RetailMarket: The decision by Zara and now H&M to take substantial stores in a new shopping complex beside the Gaiety Theatre is a major coup for developer Joe O'Reilly, writes Jack Fagan
Leading fashion retailer H&M is to trade alongside Zara in the new fashion complex to be developed by businessman Joe O'Reilly beside the Gaiety Theatre on South King Street, Dublin 2.
The decision by the two giant fashion chains to take substantial stores in the planned new building will be seen as a major coup by O'Reilly who also led the Castlethorn team that developed Dundrum Town Centre. O'Reilly also holds a 50 per cent stake in both the Ilac centre and The Pavilions in Swords.
H&M will occupy a store of 1,672sq m (18,000sq ft) at ground and first floor levels while Zara's unit on the ground floor and in the basement will have a floor area of 1,486sq m (16,000sq ft).
Bannon Commercial, which handled the lettings, said it was not in a position to disclose the rents agreed. However, other sources suggested that the rents in both cases will be in the region of €1 million per annum.
The complex is to be developed on the site of the former Eircom office block which is being demolished. The shopping facility, which is also to include a third store of 400sq m (4,306sq ft) over two levels next to the theatre, is due to open for business in the spring of 2008.
Although South King Street was pedestrianised several years ago, it is still a relatively quiet street because of the limited range of shops there.
Kevin Sweeney of Bannon Commercial said that, from the very start, its aim was to bring A-list names to South King Street. He believes that the arrival of the two leading fashion chains in the area would prove a huge boost to Grafton Street. "The whole vibrancy and dynamic of South King Street will change, and the offering to shoppers will be second to none."
Zara and H&M have been trading strongly in Henry Street since they opened almost 12 months ago. Both groups had also been looking for stores on Grafton Street with speculation that they favoured a few locations, including Bewleys, the M & S Arcade and even St Stephen's Green shopping centre (which has slipped in recent years).
The new building on South King Street was designed by leading architects A+J Wejchert and will have 3,716sq m (40,000sq ft) of retail facilities and an equal volume of office space. There will also be a number of apartments.
