Owners of Kildare Village expect ‘significant impact’ on business from Covid-19

The owners of Kildare Village expect the coronavirus pandemic to have a "significant impact" on the business, but say they are in a strong enough financial position to guide the shopping centre through the crisis.

Value Retail, whose backers include property giant Hammerson, said it does not envisage any material changes being required to credit loss positions despite the pandemic.

In addition to Dundrum Town Centre and Ilac Centre owner Hammerson, Value Retail is also backed by Scott Malkin, a New York property heir whose father owned the Empire State Building.

As well as Kildare Village, Value Retail also owns eight other outlets centres in Spain, Italy, France, Belgium, Germany and the UK, including Bicester Village.

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Value Retail Management Ireland, the local entity that runs Kildare Village, recently lodged accounts for 2019, which showed the Irish business was in a relatively healthy state prior to the pandemic.

The accounts indicate revenues rose to €15.6 million versus €14.1 million a year earlier as the company recorded a €3.5 million pre-tax loss in line with 2018.

A breakdown of revenues show €8.75 million in turnover derived from licence fee income, with a further €6.4 coming from services charges.

Value Retail’s business model is as a landlord to fashion brands, and it charges them a royalty fee based on sales instead of a fixed rent. In 2018 it obtained planning permission for a €50 million extension at Kildare Village.

The freehold investment property was estimated to be worth €115.9 million at the end of 2019, as against €114.8 million a year earlier. This sum does not include property under construction.

Value Retail shifted control of its almost €6 billion European portfolio of outlets centres from the UK to its Irish operation in 2019, in a move that the company said was spurred by Brexit.