JD Sports strikes deal for first Irish distribution centre

JD Sports has agreed the letting of a new logistics facility in Dublin to fulfil its online orders and minimise disruptions to its business from Brexit.

The UK-headquartered sportswear retailer is to base its first dedicated Irish distribution centre in Unit 35 at Rosemount Business Park in Ballycoolin, Dublin 15.

The property extends to a gross external floor area of 8,640sq m (93,000sq ft), and will be occupied by JD Sports on a 10-year full repairing and insuring lease.

As part of the deal, and in line with its focus on environmental, social, and corporate governance, the building's owner Irish Life Investment Managers plans to make a significant investment in the property in advance of the British sportswear giant taking occupation.

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Sustainability credentials

The investment will focus on major improvements to the building’s sustainability credentials with the aim of improving the BER from its current D2 certification, to a much-improved B1 energy rating.

The property’s previous tenant, office supplies specialist Office Depot (formerly Viking Direct), had occupied the premises since 2000.

Chris Bogle of Bogle Estates acted for JD Sports, while Garrett McClean of CBRE Ireland acted on behalf of Irish Life.

Commenting on the agreement, Mr McClean said: “This letting represents another major European ecommerce player entering the Irish market at a time of significant growth in the sector. We are also delighted to see the focus of Irish Life Investment Managers on improving the building’s sustainability credentials throughout.’’

The news of JD Sport’s decision to locate its new distribution centre at Rosemount Business Park comes just weeks after it indicated in a statement that it was “currently fitting out a 65,000sq ft warehouse near Dublin which will become operational in the second half of this year”.

Brexit While the company did not identify the property

at that time, it said the facility was needed to provide a solution for online orders and products destined for the Republic in the wake of Brexit.

Referring to the impact of the UK’s decision to exit the EU, it said: “We have been able to reduce our exposure to the adverse consequences of Brexit by opening an 80,000sq ft warehouse in Belgium in autumn 2020 which is fulfilling a large proportion of our core ranges and fastest-moving lines required for stores in mainland Europe. This site is functioning very well but it does not provide a solution for either online orders or product destined for the Republic of Ireland.”

JD Sports has seen its revenues increase in the past year despite the disruption caused by the Covid-19 pandemic mainly as a result of the growth in online sales throughout Europe.

In the year to January 30th, 2021, revenue at the company increased to €5.03 billion, up from €4.98 billion in the previous 12-month period.