TWO Dublin-based property developers, John Ronan and Richard Barrett are in discussions to acquire Stillorgan Shopping Centre in south Dublin.
The 30-year-old complex, which is valued at over £35 million, is being sold by the Bank Of Ireland Pension Fund because it represents a disproportionate share of its portfolio.
Mr Ronan and Mr Barrett control Treasury Holdings, one of the most active companies in the Dublin property market. Several Irish institutions and funds showed interest in the Stillorgan centre when it was offered for sale earlier this month but they were forced out of the picture when Treasury Holdings secured exclusive negotiating rights with the selling agent, Ian French of Hamilton Osborne Kind.
If the deal goes ahead, the property will probably be held by Castle Market Holdings, a joint venture company set up by Treasury Holdings and the UK-based Jermyn investment company. Jermyn has been actively seeking investments in the Dublin market since it acquired 14 properties from Irish Life in December 1994. Jermyn paid £46 million for the portfolio which included Russell Court, a 120,000-square-foot office building at the junction of St Stephen's Green and Harcourt Street.
Mr Ronan and Mr Barrett will upgrade and expand the Stillorgan centre if they agree purchase terms. They are also likely to consider enclosing the centre which has many high profile tenants but too many shops with relatively small floor areas. The Bank of Ireland Pension Fund investigated several ways of providing additional car-parking space to allow them to expand the retail area. Two years ago, they bought Beaumanns yard, an adjoining property of about 10,000 square feet for integration into the centre. An Bord Pleanala turned down a proposal to provide car-parking on part of the roof of the centre after vigorous protests from local residents.
Stillorgan, the first modern purpose-built shopping centre in Dublin, is currently producing rents of over £2.8 million. The next significant rent review takes place in the year 2001.
The layout of the Stillorgan centre has remained largely unchanged since it was opened in 1966, apart from two small extensions in 1987 and 1990.
There are 63 retail outlets, nine of which are on the first floor. Net lettable space stands at 140,000 square feet. In recent years the bank pension fund claimed to have been getting a return of 8.5 per cent on its investment. Rents rose in the last review from £30 per square foot to £45 for the standard 960-square-foot shop. Initial leases were for 42 years with seven-year rent reviews. The anchor tenants are Quinnsworth with 43,000 square feet and Dunnes Stores with 16,000 square feet.
