ShoppingCentres: The Roches Stores group is likely to seek permission to upgrade and expand the Blackrock, Co Dublin, centre and to attract chains like Zara and Monsoon to open there. Jack Fagan reports

The newly reinvented Roches Stores group has reacquired the Frascati Shopping Centre in Blackrock, Co Dublin, for over €50 million - some €40 million more than it sold it for just 10 years ago.

The privately owned group is now expected to seek planning permission to enlarge and upgrade the centre with the intention of attracting several leading UK and European multiples like Zara, River Island, Monsoon and Marks & Spencer.

In 1994, Roches sold not only the freehold of the Frascati Centre but also similar interests in its anchor stores at The Square in Tallaght and Nutgrove Shopping Centre for an overall figure of £14 million (€17.78m). Frascati's valuation at that time was about €9 million.

The purchaser, Scottish Provident, did exceptionally well out of the deal - the Frascati centre alone showed annual capital appreciation of around 20 per cent over the past decade. And the current rent roll is about €2 million. The assurance company has already sold on its interests in The Square and Nutgrove at a handsome profit.

Colliers Jackson Stops advised Roches on buying back the centre while Palmer McCormack acted for Scottish Provident.

As the main tenant in Frascati, Roches has always held the key to the enlargement of the 9,290 sq m (100,000 sq ft) complex which stands on a well located site of 6.5 acres.

It is not known how much additional space is planned but should it choose to build a multi-storey car-park on site, it could expect to secure permission for a reasonably large extension.

The company will be anxious to avoid a clash with local residents similar to the one that has blocked the long-planned redevelopment of Stillorgan Shopping Centre by Treasury Holdings.

Roches operates a large food supermarket as well as a recently revamped department store at Frascati but after closing its food outlets in Henry Street, Blanchardstown and Limerick earlier this year, it will be no surprise if it adopts the same policy in Blackrock.

Roches may also seek to replace the often criticised McDonalds fast food operation with a more traditional family restaurant.

Other tenants at the moment include Uni Pharmacy, 02, Golden Discs and Hughes & Hughes. Roches supermarket is in direct competition with a foodstore operated by Superquinn on the opposite side of the Blackrock bypass.

The company's enthusiasm for redeveloping the Frascati site has been fuelled by the runaway success of its new Henry Street store and its profitable link-up with top class fashion houses like Zara.

It expects to repeat the success when it sets aside part of its Blanchardstown store for Zara in the coming months.

The same strategy may also be usefully employed at its other branches.

Apart from bringing in new fashion labels, Roches has also upgraded its household goods department which is now among the best available in the Irish market.

The expenditure of €65 million on redeveloping the Henry Street store - as well installing Zara - has transformed the business and put Henry Street at a clear advantage over Grafton Street.

Zara's arrival has also sent shock waves through fashion retailing in the city and forced many rivals to revise their business strategies.

The decision to move Zara into part of the Blanchardstown store should help that centre as well as independent traders trying to cope with the overvalued rents.