UK retail multiple targets Dundrum

Britain's third biggest department store chain, House of Fraser, is believed to be close to agreement on taking the anchor store in Dundrum Town Centre currently under construction, and due to be completed towards the end of 2003.

The UK multiple has apparently targeted the 125,000 sq ft department store in the £250 million (€317.4m) development which will have a wide range of facilities. These will include civic buildings, a 200seater theatre and an 11-screen multiplex cinema, medical centre, 78-bedroom hotel, 190,000 sq ft of offices, 59 apartments and townhouses and a car-park with 2,900 spaces. It is likely to be the last major shopping centre to be developed in the south Dublin suburbs for many years.

If a deal with the House of Fraser is confirmed, it will be a strong endorsement for the centre and a major coup for the developers, Castlethorn Developments, before they officially launch the scheme. It will give Dundrum a considerable advantage over rival shopping centres and enhance its appeal to leading Irish and international traders.

Larry Brennan of agents Hamilton Osborne King confirmed this week that he was in discussions with a major multiple for the department store but refused to name the company involved. Harrington Bannon is the joint letting agent.

Several other prominent groups known to have been chasing the store include Arnotts, Debenhams, Marks & Spencer, Dunnes Stores, Penneys and possibly even Brown Thomas. Some of these are likely to be interested in renting the three medium-sized units of around 30,000 sq ft which will also be available.

Dundrum's location in the heart of a highly populated, solidly middle-class area has obvious appeal to traders. The department store, fronting on to a civic square, would be likely to attract a rent of slightly over £20 a sq ft, considerably lower than the going rate for the centre because of the large size of the unit.

The new Dundrum Town Centre is designed to conform to the 1999 Regional Planning Guidelines for the greater Dublin area, which identified Dundrum as a centre for major growth. It will be the second largest town in the Dun Laoghaire-Rathdown County Council area and is in line to benefit greatly from the arrival of both the Luas light rail service and the proposed Metro line. Tesco, which already has a supermarket on the site, will move to a new 55,000 sq ft store.

With planning permission available for around 400,000 sq ft of retail space, the centre will have about 80 individual stores, making it slightly bigger than the Jervis Centre.

Considerable emphasis is being placed on the provision of a wide range of town centre facilities including a civic square complete with pond and old millhouse plus a theatre and a day care facility for childminding. A permanent stage will be installed in the shopping precinct to give local groups an opportunity to run exhibitions, fashion shows, recitals and other forms of entertainment.

The new complex will extend from the Sandyford Road to the Dundrum bypass, first mooted 40 years ago and finally under construction with a completion date scheduled for next March.

The new centre will have new walkways linking it to the original village and eventually to the original shopping centre on the opposite side of the village. Castlethorn Developments also owns that centre, having paid almost £14 million (€17.78m) for it early in 1999. The 30-yearold centre has more than 90,000 sq ft of retail space on two levels and has become a bit dated in recent years. It has been hampered by the shortage of car-parking, an issue that is likely to be addressed when the bypass has been completed.

The new town centre will be adjacent to the newly opened Wyckham bypass which will link in to the Southern Cross extension of the M50.