One good thing leads to another. And so it is that the greater Dublin retail market is seeing one good rejuvenation idea leading to more. In a necklace of development following the new M50 motorway, one shopping centre after another is being primed for redevelopment.
Dundrum, Tallaght, Blanchardstown, and Liffey Valley have, or are embarking on, multimillion-euro schemes, transforming aging centres into gleaming shopping meccas. The latest is Ballymun. Last month, developer Treasury Holdings gained planning permission for a multimillion-euro development on the north side of Dublin that promises to deliver “a modern town centre in the heart of Ballymun”.
But what spurs these developments on? Is it a case of follow-the-leader, or simply natural progression? Dundrum – a three-level, €200m shopping project beside the Pye lands – is held up as a prime example of how rejuvenating an aging scheme can work, and enhance the local area. It is still a few months from opening, but one agent says the scheme, on a 6.5-acre site just south of the city centre, is already a success. “Dundrum has arisen from a decaying site to arguably one of the most exciting retail developments of the past 10-15 years,” he says.
The redevelopments at Tallaght, Blanchardstown and Liffey Valley are alsobeing praised. “Blanchardstown is now moresuccessful than it was before,” says Larry Brennan, director with Hamilton Osborne King. At a five-year review in 2001, rents at the scheme increased by 120%.
Clearly, such extensive development cannot fail to affect other centres. But suggesting the one centre’s success could be detrimental to another is a sore point at Dublin council. A council spokeswoman is quick to point out that the 17-acre Ballymun scheme, which will be developed in two phases over the next five to seven years, has been on the planning table for many years. “Ballymun has been an ongoing project for the past 10 years. There were lots of other things happening, such asresidential development, in the area before the retail permission was given,” she says.
However, HOK’s Brennan, agent on the scheme – which will provide 45,000m2 of retail and leisure, and 500 apartments – says Ballymun has suffered because of Blanchardstown, which was rejuvenated several years ago. “Ballymun did suffer, and it’s seen hard times. Now it’s Ballymun’s time to shine.” Brennan says the development will be hoping to pick up tenants that have not been able to find space at Blanchardstown.
Agents now fear that Ballymun’s success could be detrimental to two other centres MKN Properties’ Omni Centre in Santry and Harcourt Developments’ Donaghmede Shopping Centre. “When Ballymun comes on line, Omni will become non-existent. Ballymun will be a kick in the teeth for them,” says one agent. The centre is only a few miles from Ballymun. The agent adds: “Donaghmede, just two miles from Ballymun, needs to be totally refurbished to catch up with Dundrum.”
John Garvey, director of retail at DTZ Sherry Fitzgerald says both Donaghmede and Omni “are slightly dated and in need of a facelift and a few more exciting tenants.”
John McKeon, director of MKN Properties, is willing to admit his scheme needs work, and that development has been, in part, influenced by the rejuvenation of surrounding centres. He says retailers are always concerned that they will be left behind, which is why the company put in a planning application in March for a new mall and reconfiguration of space at Omni.
McKeon hopes planning will be granted by August. “There’s more UK and European multiples that have come in, and they want bigger premises,” he says.
There was no comment on the Donaghmede shopping centre from Harcourt Developments. But the town of Donaghmede is part of the 142 acres being developed under the Framework Plan – a multimillion-euro plan based on the North Fringe Action Plan 2000, covering part of Dublin.
The council spokeswoman says that both Omni and Donaghmede are large, “and they do have scope to be developed”.
HOK’s Fergus Keane offers hope to centres worried about nearby developments, pointing to the example of Bluewater’s impact on other centres in Kent, which not only survived but, in some instances, flourished. “Dartford and Sevenoaks experienced a dip, but they have come back stronger,” he says.
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Relatively untouched by competition, agents are saying that Cherrywood in south Dublin will be the next big development to come on line — thanks to the continuing expansion of the M50 motorway. Agents admit that the motorway, which links up with the main Belfast-to-Dublin road and circumnavigates Dublin, is the dynamo behind rejuvenation. “Edge-of-town retail developments have been along the improvements to the motorway, where there is now ease of access to all the town centres,” says Stephen Murray, director of retail at Jones Lang LaSalle. And Cherrywood, owned by Dunloe Properties, has one of the best positions, just off the M50 on the junction of M11 leading to Wexford. The site covers around 400 acres, and is near office and residential developments. “Cherrywood’s location is suitable for it to be the next big thing,” says John Garvey of DTZ Sherry Fitzgerald. Murray agrees. “In the heart of Cherrywood, there are 30 acres marked for core district centre land, which is focused on retail. It’s not being publicly marketed yet, but all the key retailers will be aware of it, and aware of the opportunity it gives,” he says. |
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Since the Irish government’s ban on smoking in public places two months ago, some developers are looking at ways to accommodate those who want to smoke. The importance of outside areas has never been greater, but applying to have an outside area is costly. In Dublin, operators have to pay €100 for a first application to extend an outside area, an additional €125 per table pa, and €170 per m2 pa for any space used on public pathways. Given the costs, it is not surprising that developers are becoming more discerning. Fergus Keane, associate director with Hamilton Osborne King, says that in the past few weeks he has met three developers with ongoing projects who have become “acutely aware of the need to provide for those that smoke”. Keane adds: “They have now factored in smokers’ needs. They are providing certain areas within their developments, such as verandas or canopied areas that can be used by smokers.” He believes that developers with such space will be able to raise the cost and rent of their buildings. Despite the additional costs, a spokeswoman for Dublin council, says there have been a lot of enquiries since March from publicans interested in acquiring extra outside space. |
