The Newry-based retailer and property developer Gerard O'Hare has teamed up with AIB and Goodbody Stockbrokers to make a bid for the Pavilions shopping centre in Swords, believed to be worth up to €600 million.
Approximately 10 bidders and consortiums have expressed an interest in buying the centre and a 5.2 acre development site that adjoins it. The deadline for applications is Friday and agent Druker Fanning and Partners is advising the sellers, the Eircom superannuation fund.
Mr O'Hare is one of the wealthiest property developers in Northern Ireland. He owns the Quays shopping complex in Newry and the Fairgreen shopping centre in Carlow. Mr O'Hare was also responsible for bringing Roches Stores to Northern Ireland.
Other builders are also likely to compete for the Pavilions property, including Bernard McNamara. It is understood, however, that some prospective bidders have pulled out because of the cost.
The Pavilions is believed to have been trading well, with anchor stores including Dunnes Stores, Superquinn and TK Maxx. The additional 5.2 acres of land adjoining the site is likely to be a draw for some developers. This land could potentially add another 93,000sq m (one million square feet) of mixed development, occupying an attractive location on the Malahide Road/ Swords dual carriageway.
The timing of the sale could hardly have been better because of a pent-up demand for prime retail investments, which have been particularly scarce in the Dublin area in recent years.
Retail buildings in Dublin city centre have been making record prices, with investors having to settle for yields of 2-2.5 per cent on secondary streets and as low as 1 per cent in a recent sale on Grafton Street.
