Two fashion outlet centres within 20 miles of each other along the Dublin-Belfast motorway will be in direct competition from early 2007, writes Jack Fagan
Two rival fashion outlet centres are to open within 20 miles of each other on either side of the Border.
The decision to proceed with the centres at Ballymascanlan, outside Dundalk, and Banbridge on the northern side of the Border, is expected to lead to intense competition and price cutting.
A judicial challenge to the proposed Ballymac factory outlet outside Dundalk by two Co Louth businessmen has been withdrawn in the High Court but one of the conditions is that development work cannot get under way until September 1st, 2006.
Site work at the Outlet at Banbridge has already begun and the first phase of the scheme is due to open for business at Easter, 2007. The promoters of the Ballymac centre will also be hoping for an opening date early in 2007.
Apart from the rush to get the competing centres open as early as possible, the two developers are also engaged in a fierce battle to attract big name tenants.
Some retailers claim that there will not be sufficient business to ensure the success of both centres located off the upgraded Dublin-Belfast motorway.
The Outlet at Banbridge expects 15-20 per cent of its business from south of the Border while those behind Ballymac are confident that 25-30 per cent of its turnover will come from the North because of the planned mix of tenants and favourable exchange rate for those with sterling.
For southern shoppers, there may not be the same incentive because of the current poor euro-sterling exchange rate.
Either way, the Outlet will be significantly larger than Ballymac with a floor area of 19,044sq m (205,000sq ft) devoted to 80 factory outlets.
The second phase of the overall scheme at Bridgewater Park will include 40,000sq m (430,560sq ft) of retail warehousing, a 60-bedroom tourist hotel, drive-through restaurant, petrol filling station and the balance of 3,500 car-parking spaces.
Planning permission has also been granted for a business park. The two shopping phases are to be developed by Land Securities Group and GML Estates, the Northern Ireland subsidiary of the Orana Group.
Ballymac Shopping Outlet will have a floor area of 15,487sq m (166,705sq ft) to accommodate up to 80 shops. There will also be 1,240 car-parking spaces. The €60 million project is being funded by the UK company, ING Real Estate.
The Ballymac site, which is close to Dundalk Racecourse (where an all-weather track is to be built), was assembled by the Northern Ireland company RJ McKinney. Billy McKinney, a director of that company, said that they expected to complete their scheme around the same time as Banbridge. "That means the site with the best location will be the one that will win. The Dundalk site already has its motorway links in place, draws on the largest catchment, as it includes Dublin, and is not sandwiched between Northern Ireland's established outlet centre, Junction One."
A press release from The Outlet said it was now impossible for Ballymac developers to meet their target opening date of 2006. "The delay in construction also means that the proposed Ballymac Village scheme, if it goes ahead, cannot open ahead of its major competitor, The Outlet at Bridgewater Park, which is on schedule to open spring, 2007."
The battle has just begun.
