Treasury Holdings is to pay over £6 million for a 53 per cent stake in Ballymun Shopping Centre, which is due to to be upgraded and enlarged as part of a £1 billion master plan to regenerate the northside suburb.
Treasury acquired a controlling interest in the run down shopping centre and six acres from Sisk Properties. The other shareholder, Dublin Corporation, has not given any indication that it plans to sell on its stake.
The Corporation, through Ballymun Regeneration Limited (BRL), is spearheading the redevelopment of Ballymun with the aid of valuable tax breaks. The main focus of the scheme will be new housing, office and industrial space. Green Property has been awarded the contract to develop a business and technology park with up to two million sq ft. The company plans to complete most of the work before the tax breaks run out at the end of 2002.
To date, the development of retail facilities has played a secondary role in the overall focus of the project and Lisney's Niall O'Higgins, consultant for the scheme, says that retail development will follow on as a spin-off from this infrastructural investment. "We have incorporated three or four major ground floor units totalling 250,000 sq ft in size in the Main Street development plans. We will market this to attract some big anchor tenants and this will also serve to make current existing retail units more viable."
The redevelopment of the shopping centre will greatly enhance the BRL's project, adding further momentum to the entire area. At present over half of the retail space in the centre is used and in addition to the large Tesco supermarket there are a number of other small units - Xtravision, a pharmacy, a sweetshop/newsagents, the local social welfare office, and a pub.
Treasury Holdings had secured planning permission to enlarge Stillorgan Shopping Centre but will now have to await the outcome of an appeal to An Bord Pleanala. The redevelopment of Ballymun will have to take place within two years to qualify for the tax breaks. Even if the work is not completed in that time, Treasury and the corporation is likely to see short to medium term growth on the investment.
At present, the shopping centre space is underused - the area rented makes only a third of it is rented, making around £10 per sq ft compared to £50 in a good suburban shopping centre. Tesco has spent well over £1 million upgrading its store, but many of the 17,000 residents of Ballymun still have to travel to the nearby Omni Shopping Complex in Santry to purchase the remainder of their shopping.
The new retail development on Main Street and the redevelopment of the shopping centre is just one part of the overall redevelopment scheme that will see the landscape changed beyond recognition. BRL will also develop five neighbourhood centres to further serve the needs of a population base that is similar in size to Sligo.
"These neighbourhood centres will be an important part of the overall development. Until now there's been no `butcher, baker or candlestick maker' here, and there is a growing need for these services on a local level," says Niall O'Higgins. These neighbourhood centres will consist of a number of retail units like video shops and newsagents.
Significant tax breaks are available for commercial and retail investors, although the clock is now ticking. To avail of the 100 per cent capital allowances and tax incentives, developers will have to aim for 2002 as the completion date. The Main Street will have an extensive mixture of buildings, including a new theatre, leisure centre, student accommodation and office developments.
Planners and social commentators alike have been vociferous in their criticism of the original concept of Ballymun, maintaining that the provision of high density social housing without the benefits of a town centre bound to fail. Ballymun is be given a second chance.
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