Dundrum Town Centre gets even pricier for retailers

A hefty hike in rents last year...

Dundrum Town Centre gets even pricier for retailers

Shoppers at Dundrum Town Centre in Dublin, on the first day it opened it doors in 2005 | Image: RollingNews.ie

Outlets at the Dundrum Town Centre and the Ilac Shopping Centre saw their rents rise 8% last year, as owners Hammerson forecast that rates would climb a further 7% in 2017 as a result of further rent reviews.

Last year, 10 of these were settled, involving tenants such as Aldo, Boots, BT2 and Clarks. A further 21 reviews saw rent uplifts in January 2017 alone.

Hammerson posted a 9.4% increase to £230m (€269.8m) in adjusted profit for 2016.

The UK property investment firm enjoyed an 8.8% rise in rental income, taking in £346.5 million (€405m).

Net rental income at its Irish operations came to £14 million (€16.3m), with £1.5m generated by its Dublin Central development site and the remainder coming from Dundrum.

Hammerson has reported that a €1 increase in its parking charges at Dundrum "resulted in a significant increase in car park revenue", with the firm taking in £2.3m from car parks and advertising sales in Ireland overall last year.

Earnings per share and dividend per share were both 8.6% higher.

It forecasts that rents for longer-term tenants would help its rental income increase by over 10% between now and 2019.

Hammerson's Irish operations have a 99.5% occupancy, with the majority of its business focused in the capital.

It took control of Dundrum Town Centre in South Dublin with joint venture partner Allianz last July. It co-owns the Ilac in the city centre with Irish Life, as well as land adjoining the Pavilions Shopping Centre in Swords.

Last week, Moss Bros announced that it would become the latest addition to the Dundrum Town Centre. The formal menswear retailer will open on level two of the centre later this year.

Meanwhile, the Ilac Centre will boast at least four new retail outlets in time for the summer. A €1.5m revamp of its Moore Mall South began last month, with a coffee shop, book store and more incoming.

Agreements have been exchanged for four of the five newly-created units.

BB’s Coffee & Muffins has committed to 1,679 sq ft , serving a popular range of pastries, sandwiches and coffee.

Book retailer, The Works, will occupy 1,958 sq ft and sport supplement store, So Nutrition will occupy 560 sq ft.

Specialist catering equipment retailer, Nisbets, will complete the new leasing agreements, occupying 5,554 sq ft.