RETAIL MARKET:PARK DEVELOPMENTS, the privately owned development company led by Michael Cotter, has delivered on his commitment to line up a strong range of traders for the second phase of The Park in Carrickmines, Co Dublin.
Last November, Park Developments pre-sold the latest phase of the retail park to Warren Private Clients and AIB Banking for just under €100 million. Warren also bought the first phase of The Park in January, 2006, for €100 million.
About half the 11,800sq m (127,014sq ft) of shopping facilities coming on stream has open retail use, though a supermarket or convenience store is not allowed. With most of the newly completed space already committed, Park Developments will have to underwrite very little until the tenants are in place.
Warren and AIB will get a yield of slightly over 4 per cent for their investment compared to an equivalent yield of 4.5 per cent achieved in the first stage of the scheme.
Harvey Norman, which is anchoring the second phase, will be paying a rent of €1.5 million for a store 4,923sq m (50,000sq ft). This is its 12th outlet in the Republic.
Joining them will be TK Maxx which is currently fitting out 1,880sq m (20,236sq ft), as well as a mezzanine level of 895sq m (9,634sq ft). The company trades exceptionally well in Ireland because of its offering of designer brand fashion at discounted rates. This will be its 10th store in Ireland. TK Maxx has over 2,000 stores in the US, Canada, UK, Germany and Ireland.
Also going in is Mothercare who will be renting a unit of 865sq m (9,311sq ft) for a mixture of maternity clothing, children's wear and household equipment. Mothercare has acquired the Early Learning Centre which specialises in toys that help develop vital skills among young children.
Another store of 1,860sq m (20,020sq ft) has been rented by Heatons who, like Penneys, has aimed its sports gear and range of fashion and homewares at price-conscious customers. Although established more than 60 years ago in Athlone, Heatons is now one of the fastest growing Irish retail businesses with no less than 57 stores already trading. Its rent bill at The Park will be around €700,000 a year.
A first at The Park will be Howards Storage World, a franchisee for the Australian company that specialises in all forms of storage and organisational products for the home and office. It will occupy a store of 435sq m (4,682sq ft).
Only two retail units remain available at The Park in Carrickmines and, according to letting agent Savills HOK, discussions are already taking place to let them at around €484 per sq m (€50 per sq ft). The latest phase of The Park will also have a block of four retail units ranging in size from 67.4sq m (725sq ft) to 140.6sq m (1,513sq ft) together with a café and bar/restaurant.
Carphone Warehouse has agreed letting terms on a unit of 83.3sq m (897sq ft). Discussions are well advanced to let another unit to a coffee shop trader and there is also strong interest in the remaining unit which is expected to attract a rent of €646 per sq m (€60 per sq ft).
The opening of the second phase of The Park will copper-fasten the success of the retail development which has traded exceptionally well since it opened off the M50 at Carrickmines. Woodies DIY is the original anchor and it has been trading alongside PC World, Smyth's Toys, Halfords and Jim Langan Furniture.
Bernadine Hogan of Savills HOK says the latest range of tenants going into The Park will create "a more eclectic mix and create one of the more exciting retail park concepts in south Dublin".
