Retail: Zara is set to increase its market share in the Republic after securing an outlet in the Blanchardstown Red Mall centre for its younger sister brand, Berhska, writes Gretchen Friemann.
It's understood that the company has agreed an annual rent of €500,000 on a 465 sq m (5,000 sq ft) outlet, making it the last of the major deals at the Red Mall extension, where Marks & Spencer is the anchor tenant.
While Zara's parent, Inditex, has refused to confirm the signing, property experts close to the deal claim the retailer will open its doors at the beginning of November.
Bershka is yet another success story for the Inditex fashion powerhouse. In just over six years the brand has grown to over 250 stores in more than 12 countries.
Targeted primarily at the 13-23 age-group, Bershka's fashion lines are designed to be more "club-like" than the Zara range, although stock is turned over at a similarly rapid pace. However, Zara's diversification may soon be over-shadowed by the anticipated arrival of Swedish clothing giant Hennes & Mauritz (H&M) at the centre.
Eoin Feeney of Palmer McCormack, the joint agents with Jones Lang LaSalle for the Blanchardstown centre, is confident the Swedish company will express interest in a third retail park planned for the west Dublin complex.
H&M is due to open its first major outlet in the Dundrum shopping centre but has indicated it would like a further suburban location as well as two city centre outlets.
Mr Feeney said that the strong demand for space in the Red Mall, which is now completely pre-let, indicated a shortage of suitable property for "multinationals seeking to expand or launch their brands in the Republic".
Construction on the new centre, titled Retail III and located near TK Maxx, is not expected to start until next Easter. In the meantime, an aggressive marketing campaign is underway to secure high-paying tenants.
According to Mr Feeney, there are two options: the park will either host a single department store, like Debenhams, or it will be built as a mixed retail scheme, which he claims offers better value for money to the Blanchardstown centre's owners, Green Property.
Rent at Retail III is projected to be in the €40 to €45 per sq ft range, although this is still relatively high compared to similar retail park schemes.
Green Property is spending around €20 million on the development following its €32 million pay-out for the Red Mall extension.
