RetailSector: Leading American fashion retailer Guess is to anchor a €22m retail and office scheme taking shape just off Grafton Street, writes Gretchen Friemann
Dublin city centre retailers will face tough competition this spring with the arrival of the American fashion giant Guess at South Anne Street.
The international clothing company is to be the anchor tenant for a €22 million retail and office scheme which is located just off Grafton Street and is being developed by property magnate Paddy McKillen and solicitor Ivor Fitzpatrick.
According to retail sources, Guess has agreed to pay an annual rent of €350,000 for a 355sq m (3,821sq ft) two-storey unit at the South Anne Street scheme.
The American retailer, which is best known for its branded jeans, will trade alongside a 163sq m (1,755sq ft) Aveda salon which is to be operated under franchise by the Irish company Whetstone. It's understood the rent on the second unit is around €160,000 a year.
The South Anne Street scheme is one of the most eagerly awaited property developments in the city centre. For the past few years there has been endless speculation that Briarglen, the company that McKillen and Fitzpatrick formed to develop the scheme, was attempting to land luxury brand names, such as Armani and Max Mara, in a bid to turn the retail strip into Dublin's version of London's Bond Street.
However, industry sources claim these companies are reluctant to operate stand-alone outlets in Ireland and are unwilling to compromise concession deals with Brown Thomas.
While Guess is not at the luxury end of the market, it is not far below it and the opening of such a large-scale store is certain to attract high-spending consumers.
The American giant's presence, alongside the Aveda salon, is also likely to please local retailers and business groups who have recently expressed frustration at the deterioration of the Grafton Street area.
Hamilton Osborne King, joint agents on the scheme with HT Meagher O'Reilly, declined to discuss the rental agreements for Guess and Aveda but confirmed the two retailers would be opening their doors by late April or early May.
Bernadine Hogan of HOK said Guess will be a "big hit with the fashionistas of Dublin"and claimed the brand will add more of a "high-end exclusive vibe to the city centre".
It's understood negotiations are under way with another fashion retailer for the last of the large retail units in the scheme, which stretches from 21 to 26 South Anne Street.
Two smaller units, also fronting out on to the street, are still available. HOK is quoting Zone A rents for the scheme of €3,229 per sq m (€300 per sq ft).
The development at 21-26 South Anne Street is an unusual scheme in that there have been few pre-letting deals.
Charles Guilbaud, the son of top restaurateur Patrick Guilbaud, is the exception. He signed up to the scheme early last year and will open an upmarket bistro in the 762sq m (8,202sq ft) basement at the end of April.
As Briarglen owns the South Anne Street property outright, the company has been able to be selective over what tenants it accepts and has taken its time deciding what sort of scheme it would develop.
The site was originally earmarked as a luxury hotel but McKillen and Fitzpatrick changed tack and opted for a retail and office scheme.
So far there are no leasing agreements on the 2,000sq m (21,528sq ft) of open-plan office space which, along with the restaurant, will be accessed via Anne's Lane.
Briarglen also intends to lease or sell a number of apartments currently under construction at 25 and 26 South Anne Street.
The final phase of the scheme will be the restoration of a Georgian terraced house at 46 Dawson Street. Briarglen has planning permission for retail use in the basement and ground floor of the property while the upper floors may be leased as offices.
