Londonderry’s iconic Foyleside Shopping Centre has been sold for £27m.
A local business family has bought the mall as part of a consortium including DV8 owner Ian McMahon.
The shopping centre, located in the regional retail capital of the north-west of Northern Ireland, opened its doors in 1995. It measures 364,637 sq ft over four levels and comprises 53 stores, including three anchor shops and six food court spaces.
It is anchored by Frasers, Marks & Spencer and Dunnes Stores. Other tenants include Next, H&M, Boots, Holland & Barrett, Monsoon, Waterstones, DV8 and River Island. More than 98% of the scheme is let.
Foyleside Shopping Centre was previously bought by London-based investment firm Kildare Partners along with Forestside Shopping Centre in 2014, for a combined £135m.
The two centres were put up for sale earlier this year for around £70m. The owner was aiming to sell Foyleside for just over £34m.
The news comes after Forestside was bought for £42m by Michael Herbert, who formerly operated the UK’s biggest KFC franchise. The centre, bought by investment vehicle Mussenden Properties, transacted above its £37m asking price.
Ben Turtle, head of Savills Northern Ireland, which advised the vendor, said the completed Foyleside sale represented “a significant transaction, highlighting the buoyancy and resilience of Northern Ireland’s retail sector”.
According to Savills, a number of opportunities exist for the new owner to enhance value and drive rental income at Foyleside, including potential development of leisure, residential and office spaces, and exploration of lease re-gear opportunities to secure long-term commitment of retailers. There is also an opportunity to enhance the catering offer by attracting new multinational brands and potentially developing a multi-screen cinema on the rooftop of the existing east car park.
Turtle said: “This centre has been a retail cornerstone in Derry/Londonderry, offering an exceptional and diversified shopping experience to the millions who visit annually.
“Foyleside Shopping Centre is not just a retail destination but a landmark in its own right. The combination of strategic location, strong tenant line-up and development potential makes it a pivotal asset in the Northern Ireland retail landscape. We are confident that the new owners will continue to harness its potential and elevate the shopping experience for all visitors.”
Donall McCann said on behalf of the new owners: “Foyleside has provided the premier retail offering to the people of Derry and surrounding areas for more than 30 years. As investors and asset managers, we have a firm belief in the importance of physical retail, and are excited at the opportunity to work with existing and new occupiers to further enhance the offering at Foyleside.”
McCann added: “It is a testament to all of those involved back in the early 1990s who helped to deliver to the North West region what is still recognised today as one of Northern Ireland’s leading centres. Under our stewardship we intend to continue that legacy.”
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