TownCentres: Tesco's plans to redevelop its €55m Golden Island centre in Athlone will need to be looked at again after planning permission was granted for a €150m town centre scheme, writes Jack Fagan

The decision to allow a major new shopping centre to be developed in Athlone will come as a severe blow to Tesco which only recently bought the rival Golden Island Shopping Centre for around €55 million.

Tesco apparently planned to enlarge its own anchor store as well as the remainder of the 12,077sq m (130,000sq ft) centre which has about 40 traders.

It is questionable whether the multiple will go beyond enlarging its own store now that An Bord Pleanála has granted permission for a €150 million town centre which will include 18,580sq m (200,000sq ft) of retail space, a 161-bed hotel and 163 apartments.

The six-acre site for the proposed new shopping centre just given planning permission is particularly well located off the main street.

With Tesco located in the Golden Island (as well as the old Monarch Properties-developed centre) and Dunnes Stores operating from a stand-alone store nearby, the likelihood is that the new town centre will rely on Marks & Spencer to meet the needs of shoppers looking for food.

While Golden Island is supermarket-led, the new complex will be primarily be occupied by fashion retailers.

Debenhams is likely to be contending for space, either for its 6,967sq m (75,000sq ft) or its 2,787sq m (30,000sq ft) formats.

Dunnes may also seek space for a fashion and homeware outlet while the other likely tenants will include Next, New Look, River Island, Monsoon, Zara, H & M ,as well as Top Shop and Miss Selfridge.

Neil Bannon of Bannon Commercial will be handling lettings.

The centre is to be built by a consortium led by hotelier John O'Sullivan and accountant Jim Keane.

Mr O'Sullivan is also currently involved in developing a new shopping centre and apartments in Maynooth, Co Kildare.