Bigger store on the cards for Grafton Street

GRAFTON STREET could be in line for a major new store if the landlord of the Jack'nJones shop succeeds in his bid to develop part of the Creation Arcade.

It is understood the owner of the Jack'nJones store, whose identity is not known, is trying to negotiate a deal with the landlords of the adjoining properties to create a large outlet that would attract the major fashion multiples.

Shops over 465sq m (5,000sq ft) are in short supply on Grafton Street so a new store of that scale could command a steep rent.

Marks Spencer is thought to be earning over €1.6 million a year from its redevelopment of the former Grafton Street Arcade, which has been turned into a flagship outlet for Tommy Hilfiger and which stretches to 697sq m (7,500sq ft).

The landlord of the Jack'nJones store recently bought in the lease for €850,000, prompting speculation about a possible amalgamation of the jeans shop with the Meteor unit next door.

Retail sources point out that if those two properties could be extended out the back into the Creation Arcade, which runs between Lemon Street and Duke Street, an even larger outlet than the Tommy Hilfiger flagship store could be developed.

Lisney's Hugh Markey is acting for the owner of the Jack'nJones store but he declined to comment on the speculation.

The shop's lease is available on a short-term let until after the Christmas period. Although a number of properties on Grafton Street theoretically lend themselves to amalgamation, brokering such a deal is a tricky and expensive process. Marks Spencer reportedly shelled out €7 million in 2005 to gain control of Golden Disc's unit in the Grafton Arcade. Without that final lease any redevelopment would have been impossible.

There is obvious potential to develop the Guinness shop at the corner of Grafton Street and South Anne Street.

It is understood the lease of the O'Briens Sandwich Bar outlet is on the market and if those two units were amalgamated a store of around 121sq m (1,300sq ft) could be created.

Although such a development would be relatively simple, as both shops are part of the same property, it is unclear whether landlords, Bank of Ireland Asset Management, would support the move.

The Irish-owned international sandwich chain bought back the lease on 34 Grafton Street from its franchisee, Tom Cunningham, two years ago for a premium of €200,000.

Two further contenders for amalgamation are the Richard Alan and Zerep buildings which are for sale for a combined price of €42 million.

The incorporation of these properties, which are owned by developer Bernard McNamara, would result in an enlarged store with frontage onto both Grafton Street and South King Street.

However the developer would need control of both leases, and that is likely to be a costly exercise.