Fashion multiples are likely to be interested in the trading pitch along the Ilac's central mall, writes JACK FAGAN.
DUBLIN’S ILAC centre is to get a major new store following a decision by Dunnes Stores to surrender its lease of a 4,180sq m (45,000sq ft) food outlet along the Moore Mall. It also operates two other stores at the centre.
The continued occupation of the food unit by Dunnes has been one of the issues in a lengthy legal dispute between the multiple and the centre’s owners, Irish Life and property developer Joe O’Reilly.
The decision by Margaret Heffernan to move Dunnes out of the food premises next October comes 15 months after it won its High Court challenge to a decision refusing it permission to operate a “high quality food and wine store” at its branch on the central mall. This store sells home goods and fashion. The company holds a 145-year lease on the premises since 1989 on condition that it is used as a department store.
Dunnes argued in court that the lease required the landlords to take “diversity” into consideration when looking at its application for change of use. The landlords, who have spent over €60m upgrading the centre and amalgamating shops to meet the demands of international traders for larger units, refused a request by Dunnes for a change of use on the grounds of good estate management.
As part of the original plans for the redevelopment of the Ilac, the landlords had made extra space available to Dunnes to allow it link its new four-storey Henry Street store into the centre. This was facilitated by taking out a former A Wear store and an office suite.
Dunnes operates this massive premises of 13,499sq m (145,302sq ft) as a fashion outlet and a department store. One of the conditions of the deal apparently was that Dunnes would vacate the premises along the Moore Mall and allow the landlords to lease it to a single trader or break it up into either three or four units. Fashion multiples such as TK Maxx – which is still on the expansion trail despite reduced consumer spending – are likely to be interested in the new trading pitch.
Joint agents HWBC and Bannon Commercial are expected to launch a marketing campaign for the new outlet in the coming weeks. The same agents were successful in persuading both HM and River Island to move into distinctive new units along the Henry Street frontage of the Ilac.
H&M is paying a rent of €1.5 million for 371sq m (4,000sq ft) at street level and a further 650sq m (7,000sq ft) overhead. River Island’s rent is one of the highest in the city at €2.4 million. The store has 743sq m (8,000sq ft) on the ground floor and another 789sq m (8,500sq ft) at first floor level.
Ilac management says that the centre is attracting an average of 300,000 shoppers per week. Its overall retail area of 27,870sq m (300,000sq ft) is producing a rent roll of around €20 million per annum.
