3.5-acre site beside IKEA for over €3m
AN UNUSUAL opportunity for a retailer to trade alongside IKEA at Ballymun in Dublin will follow from the forthcoming sale of a development site beside the world’s biggest furniture trader.
Dublin City Council and Ballymun Regeneration Ltd are likely to net in excess of €3 million for the 1.5 hectares (3.5 acres) which will accommodate a retail warehouse of between 7,000 and 8,000sq m (75,346/86,100sq ft).
The sale by tender on November 15th is being handled by Lisney which has already reported a considerable level of inquiries from Irish and overseas interests.
The site is the only one in the area zoned for retail warehousing and is strategically located along the road leading to the IKEA store and within a short distance of Junction 4 of the M50.
Lisney says that apart from the enquiries already received they expected interest from Irish, UK, European and international retail warehouse owner-occupiers as well as investors, developers and financial institutions.
The lands are being offered for sale on the basis of a 199-year leasehold title to be transferred on satisfactory completion of the development in line with the terms of the planning permission.
Shoppers at IKEA’s Ballymun store spent almost €2 million a week in 2011. In the same year the multiple’s global turnover rose from €23.8 billion to €26 billion.
In other countries it is not unusual for retailers to “piggyback” on the success of IKEA by trading alongside the giant. In Belfast the French sport goods and sportswear retailer, Decathlon, trades successfully beside IKEA.