Retail: Foreign multiples like Tommy Hilfiger, Gap and Esprit are amongst those which may be interested in the lease of Game. Jack Fagan, Property Editor, reports
Several international retailers are likely to pitch for the lease of the Game store on Dublin's Grafton Street which has come on the market following the completion of a rent review.
Peter Levins of ATIS Harrington Bannon is seeking key money of over €1 million - probably a record for the street - for the well-located premises opposite Brown Thomas at 7 and 8 Grafton Street.
Foreign multiples believed to be looking for a pitch along the city's principal high street include Tommy Hilfiger, New Look, H & M, Gap, Mexx, Esprit, Footlocker, Puma and Schuh.
Levins says he is in discussions with several international retailers not currently represented on the street.
The Game lease provides a significant quantum of retail space and is located in a prominent position near the bottom of the street.
Game recently agreed a rent of €720,000 per annum for the four-storey over basement building which has a total floor area of 707 sq m (7,610 sq ft).
There is retail use on three levels, basement, ground and first floor, with 124 sq m (1,334 sq ft) available at street level. About 66 sq m (710 sq ft) on the ground floor of number 8 is sublet to Sock Shop on a long-term lease at a rent of €196,850 per annum.
A health food trader is about to replace Sock Shop in the small unit. This arrangement means that whoever acquires the Game lease will have to pay a net rent of €523,150.
An analysis of the overall rent by Harrington Bannon suggests that the new Zone A rent equates to €5,675 per sq m (€527.25 per sq ft). Because the rent review has been overdue for some time, the settlement is significantly below the rent recently set for the former AIB bank building at 64 Grafton Street which is about to be revamped.
Fashion retailer Monsoon is likely to be paying a Zone A rent of €8,073 per sq m (€750 per sq ft) - the second highest on the street after River Island.
That company has signed a new 20-year lease at a Zone A level of €13,751 per sq m (€1,277 per sq ft). However the double fronted shop has a different configuration to most outlets on the street and for rental purposes can only be compared to BT2 and A-Wear, two large stores controlled by Brown Thomas. The River Island investment is for sale at over €50 million through Druker Fanning and Partners.
The lower level of rent set for the Game building will naturally enhance the appeal of the premises to the fashion industry which now trades out of the vast majority of stores on the street.
With even larger rent increases on the way, it is becoming increasingly difficult for non-fashion traders to operate profitable businesses on the street. Fashion houses generally have sufficiently large profit margins to pay higher rents. Other companies like Game and Thorntons, the chocolates shop, do not.
However, Game is by no means withdrawing from the city centre as it also has thriving businesses in Dawson Street and Henry Street and out-of-town stores at Blanchardstown, Liffey Valley and The Square.
It also has stores in Cork and Limerick and last weekend opened an outlet in Galway. Further openings are planned for Dundrum and Mahon Point as well as Waterford, Dundalk, Sligo and Maynooth.
The company, which had a turnover last year of £560 million, is also seeking new opportunities in Athlone, Wexford, Drogheda, Carlow, Ennis, Kilkenny and Letterkenny.
