The next round of rent increases at the Blanchardstown centre will be significantly below the rises likely to be sought at competing centres in the Dublin area, writes Jack Fagan

Traders at the Blanchardstown centre in west Dublin are facing rent increases of at least 60 per cent when the next general review gets under way in the coming weeks.

The review will coincide with celebrations to mark the 10th year of operations at the centre which, along with the adjoining retail parks, is easily the biggest shopping complex in Ireland.

Green Property Company, which has a rent roll of over €29 million from the centre, is due to notify tenants shortly on the size of the increases being sought.

However, the indications are that new rent levels proposed will be significantly below the increases likely to be sought by competing shopping centres in the Dublin area.

In the last general rent review in 2001, Green's agents negotiated a settlement with over 90 per cent of the traders. Rents for the remaining outlets were set by an independent arbitrator.

Green's decision to go for what it calls a "modest" increase on this occasion stems from a desire to hold on to the extensive range of independent traders which, along with the many multiples, give Blanchardstown such a broad appeal with shoppers.

Even as things stand, Blanchardstown's average Zone A rent of around €2,045 per sq m (€190 per sq ft) is considerably below Liffey Valley's average of €3,900 per sq m (€362 per sq ft) which was set at the end of 2003.

The five-year review now due to begin in Blanchardstown is likely to see rents rise to a Zone A level of at least €3,229 per sq m (€300 per sq ft).

In Dublin city, the equivalent Zone A rents at the St Stephen's Green shopping centre are around €3,400 per sq m (€315 per sq ft) while those in Henry Street have now risen to almost €5,000 per sq m (€464 per sq ft). Rents in Grafton Street are peaking at €10,000 per sq m (€929 per sq ft).

Blanchardstown has strengthened its appeal in recent years - it now has a footfall of 300,000 visitors per week or over 17 million annually - by developing its Red Mall fashion enclave. Early next year a similar Fashion Park will open to cater for some of the top international traders.

Green estimates that the annual retail turnover in the centre is now around €1 billion. The decision by one of the main anchors, Roches Stores, to bow out and assign its space to Debenhams is expected to enhance the appeal of the centre. Zara is also trading in part of the Roches Stores unit.

Interestingly, some of the large anchor stores, such as Debenhams (with a rent of €1.7 million) and Penneys and Marks & Spencer (both paying €1.3 million), do not have rent reviews pending at this stage.

However, some of the big name traders facing rent increases include Sasha (already paying €236,000 for a store of 195sq m/2,100sq ft); Monsoon (€155,000 for a shop of 120.7sq m/1,300sq ft); Principles (€550,000 for 929sq m/10,000sq ft); Warehouse (€150,000 for 157.9sq m/1,700sq ft); Dixons (€400,000 for 464.5sq m/5,000sq ft); Virgin (€375,000 for 510.9sq m/5,500sq ft); HMV (€350,000 for 566sq m/6,092sq ft); and Mothercare (€350,000 for 418sq m/4,500sq ft).

H&M to open at centre

Blanchardstown's success in enhancing its line up of tenants over the past year will be taken a stage further in the coming weeks when leading European fashion retailer H & M joins other top name traders.

The fashion company is to occupy a store of 1,532sq m (16,500sq ft) on level two, opposite the Zara store.

The unit was previously occupied by Next and the lease was bought back for a premium of over €400,000. Blanchardstown's management has apparently negotiated its first non-food profit sharing deal with H & M. Under the terms of its lease, H & M will pay Green either 80 per cent of the open market rent or 10 per cent of its turnover, whichever is the highest.

The forthcoming rent review is to be handled by agents HWBC and Jones Lang LaSalle.