Development Securities has acquired The Mall Shopping Centre in Armagh, Northern Ireland for £7.4 million. The Mall was first built in 1998, and since then has grown in prestige with the result that it now generates a net operating income of £748,000 per annum. Around 65 per cent of this income currently comes from the anchor, a 49,000 square foot unit occupied by Sainsbury’s – the retailer currently holds a 9 year lease which has not yet expired, so will guarantee strong income for the foreseeable future.
The remaining net income comes from the 12,000 square feet of retail space, which has only a 4.4 per cent vacancy rate based on floor area. Most of the centre’s retail space is occupied by national retailers and high street brands, although local and independent retailers are also represented fairly well.
Executive director for Development Securities, Matthew Weiner, believes The Mall will be a valuable acquisition for the firm in the years to come.
He says; “With a number of disposals having recently been made, we are continuing to recycle our capital into further real estate opportunities where we can add value.
“The Mall is an established and popular shopping centre in Armagh that offers good asset management and enhancement options and some scope for further development on site.
“Within our investment portfolio, we have a number of regional, foodstore anchored retail schemes and this latest acquisition supports our activities in this market.”
Although no future plans for The Mall have yet been revealed, Development Securities is expected to follow the tried and tested blueprint subscribed to by most retail centre developers of late. This could mean that The Mall stands to gain significantly in the fields of leisure and hospitality, with common themes throughout the UK and Ireland involving the construction of cinemas and restaurant spaces or food courts on site.
While The Mall may now officially be off the market, however, there remain a number of similar investment opportunities in the Northern Ireland commercial property market. Earlier this month, three of the country’s best known shopping centres – Foyleside in Londonderry, Forestside in south Belfast and the Abbey Centre in Newtonabbey – were also placed up for sale, providing excellent scope for investors keen to cash in on the retail property boom.
In the case of the latter three, the reason for sale seems to be rooted in financial obligations by owners Foyleside Ltd. And Abbey Centre Ltd. Each firm’s respective portfolios were assembled using substantial loans from Ulster Bank, one financial organisation which suffered during the financial crisis and is now seeking to recoup on loans as a matter of urgency.
