Thursday 19 October 2017

Pippa pop-up fuels Dundrum footfall surge

Footfall across Dundrum Town Centre surged by 12pc over the opening weekend of Pippa O’Connor’s pop-up shop, POCO. But some retailers say they are struggling to cope with upward-only rent reviews at shopping centres around the country
Footfall across Dundrum Town Centre surged by 12pc over the opening weekend of Pippa O’Connor’s pop-up shop, POCO. But some retailers say they are struggling to cope with upward-only rent reviews at shopping centres around the country
Dearbhail McDonald

Dearbhail McDonald

Fewer than five commercial lease disputes have been referred to arbitration since British and US funds took over two of the country's largest shopping centres - despite warnings of "carnage" in the retail sector, the Sunday Independent has learned.

Both Blanchardstown Centre, bought by US private-equity firm Blackstone last year and Dundrum Town shopping centre, acquired by UK property group Hammerson and its joint venture partner Allianz Real Estate - with almost 400 tenants between them - are undertaking rent reviews. Many retailers are still operating under upward-only rent review leases.

Upward-only rent review provisions were banned in 2010, with new leases entered into since then reviewed upwards or downwards on an open-market basis.

Hammerson, which operates almost 180 leases at Dundrum, agreed 21 leases in January 2017, delivering rental uplifts of 7pc, and is set to agree a further 40 in the coming year.

Blanchardstown, operated by Multi Corporation - Blackstone's pan-European retail platform - has also recently commenced a rent review with tenants, some of whom fear that they will face increases of 10pc or more.

Retail Excellence Ireland said that smaller, indigenous Irish companies are at risk of closure owing to the reviews. The representative body has undertaken a survey of retailers in the country's main shopping centres to assess a range of issues facing retailers including profitability and sustainability.

Sunday Indo Business

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