3rd february 2017 · 3rd february 2017 joint agency proposal to by. dear mark, ... bimba y lola,...

3rd February 2017

Joint agency proposal to by

Dear Mark,

Thank you for inviting Bannon to submit a proposal for the joint leasing role of Blanchardstown Centre.

This represents the most exciting retail real estate opportunity in Ireland. We are extremely enthusiastic about the impact Multi and Blanchardstown Centre can have on the market over the next decade.

Bannon is best positioned to provide the comprehensive service that is required for such an asset. Our team is the only one in the country with the relevant experience to provide Multi with the full palate of expertise for the leasing and development input roles.

Neil, Darren and Jennifer have an unparalleled wealth of knowledge in the retail sector and together were instrumental to the success of some of the best known retail projects in the country. Backed by a full service team they are part of the most integrated property firm in the market.

I can personally assure you of the full dedication of our team in re-establishing Blanchardstown Centre as the most valuable retail asset in Ireland.

Yours Sincerely

Paul DoyleManaging DirectorBannon

For joint agency role on Blanchardstown Centre to

Submission by

3rd February 2017

5

Contents

1.Introduction

Page 7

2.The Team

Page 11

3.Bannon

Page 21

4.Understanding

Blanchardstown Centre

Page 31

5.The Evolution of


Page 41

6.Why

Bannon?

Page 49

Introduction

9

Bannon is Ireland’s Retail Specialist

INTRODUCTION

Retail is a complex asset class which has become increasingly specialised over the last decade. Blanchardstown Centre has a unique relationship with the physical and economic environment within which it operates and competes for business.

To maximise asset value you need a specialist who has the knowledge and experience both nationally and internationally and can convey this to potential retailers. If the team is not fully immersed in the retail market at every level; leasing, management, asset management, development consultancy, rent reviews and capital markets, they cannot fully capitalise on Blanchardstown Centre’s strength in delivering value through leasing for Multi.

Bannon is Ireland’s largest and most experienced retail specialist and has an intimate understanding of not just the physical assets and the wider retail market but also retailer business models.

We are involved in the leasing and management of more retail schemes than any other agency in the country. We have a current active involvement in over 58 retail schemes from town centres and shopping centres to retail parks and local developments.

We collect more than 250 pieces of turnover data weekly/monthly and on average complete more than 150 retail lettings per annum.

We use this data and experience to understand how retailers operate, assess what they can afford to pay and as a consequence maximise the rent achievable for our clients.

Bannon act for a number of new to market retailers with 120 store requirements over the next 3 to 4 years. We feel exposure to both landlord and tenant work is essential to give balanced market advice to our clients across all sectors of the retail market.

Due to the complexity of the retail asset class, owners need an integrated approach to maximise an asset’s value. They need a best in class retail leasing team supported by the most experienced retail asset and property management teams in Ireland.

The Team

13

Bannon understands Irish retail better than anyother agency and has the experience and the team to deliver on Multi’s expectations

- Most experienced leasing and development retail teamin Ireland.

- This team is working together on prime retail assets longerthan any other team in the market.

- This team has been involved in more retail schemes thanany other agency in the country.

- This is the team that delivered in Dundrum Town Centrefrom scheme concept to the fully let and most valuableretail asset in the country.

- Consistent attendance at Mapic, Revo (BCSC) for over 15years and Completely Retail since inception.

- This team actively pursues retailers both here and abroadand do not rely on associated offices to make introductionsor advise on retailer movements.

- Founding member of The International Retail Network(TIRN), a collection of bespoke retail agency practices inthe USA, Europe and Asia.

THE TEAM

Darren PeavoyExecutive DirectorTeam leaderRetail Agency & Development

Neil BannonExecutive ChairmanDevelopment and Strategy

Jennifer MulhollandAssociate DirectorRetail Agency

15

THE TEAM

Darren Peavoy

- Darren is a Director in the Retail AgencyDepartment at Bannon with a department of 8retail agency surveyors.

- He has over 16 years’ experience in all aspectsof property and has specialised in retail agency since 2003.

- He was one of the key members of the leasingteam of Dundrum Town Centre from 2003until its purchase by Hammerson and Allianzin 2016.

- He was involved in the development anddesign stage of Dundrum Town Centre,Bridgewater Shopping Centre, Arklow, SouthKing Street and Swords Pavilions Phase 3.

- He has been the lead on the leasing teams of7 newly built shopping centres.

- He has a depth of experience in dealing withboth National and International occupiersand has secured lettings to retailers suchas Hollister, Hamleys, Snow & Rock, HarveyNichols, Superdry, Urban Outfitters, LK Bennett, Cath Kidston, H&M, Mint Velvet, Boots, NewLook, Argos and Lidl.

- He has also agreed a large number of F&Band leisure lettings to operators such asRainforest Adventure Mini Golf, Milano, Zizzi,Dunne & Crescenzi, Siam Thai, Pizza Hut, KFC,Yo Sushi, Starbucks, Costa Coffee and ButlersChocolates.

- He travels regularly to the main retailconferences including BCSC, MAPIC,Completely Retail and ICSC to bring newtenants to Ireland and is a member of bothRevo and the International Council of Shopping Centres.

- He has acted for a large number of landlordclients such as Crossridge Investments,Chartered Land, Davy Private Clients, GreenProperty, Key Capital, Grant Thornton, Duff &Phelps and Irish Life.

- He provides strategic acquisition advice to anumber of national and international retailersin sourcing new stores in their expansion drivein Ireland including Carphone Warehouse,Smiggle, iFly, Ann Summers, Gino’s, Tuthillsand Fly London.

- He is a key member of The International RetailNetwork which has offices in the USA, UK,China, Germany, France, Spain, Czech Republic and Belgium. TRIN represent retailers such asInditex, H&M, TK Maxx, Brandy Melville, Uniqlo,Barnes & Noble, Hugo Boss, Loft, Sandro,Bimba y Lola, Aesop, Nike, Wholefoods, Fossil,Quicksilver and Fnac.

He will bring his vast letting expertise and understanding of retail development to the role. He has the ability to introduce exciting international brands to the scheme through his vast national and international contact base and facilitate direct retailer meetings.

Darren will also bring his understanding of retailer’s needs, space requirements and knowledge of who is in the market for space.

DIP AVEA MSCSI MRICSExecutive Director

T: +353 1 647 7900 M: +353 86 3805330 E: [email protected]

17

THE TEAM

Neil Bannon

- Neil has 25 years’ experience in the retailproperty business dealing with shoppingcentres and retail parks all over Ireland fromthe refurbishment and leasing of GalwayShopping Centre in 1991 to the developmentand leasing of Dundrum Town Centre.

- Neil has been involved in over 60% of theRepublic of Ireland’s shopping centre stock.

- His involvement with retail assets ismultifaceted, advising on design, developmentstrategy, funding options, concluding anchordeals and devising and implementing leasingstrategies.

- His understanding of how retail schemes workfor tenants given his role in Property & AssetManagement makes him ideally suited for theBlanchardstown role where he can combinethis with his development expertise to driveprofitability for Multi.

- Part of his role has been to undertake an analysis of potential spend, catchment penetration andthe implementation of business strategies forthe schemes to seek to capture as much spend as possible with a view to driving the rent thatcan be sustainably derived from the asset.

- He provides advice to Dublin, Limerick,Wexford and Waterford Local Authorities -(thelatter jointly with NAMA) on retail strategiesto enhance their Town Centre’s as retaildestinations.

- Neil has agreed anchor deals with Tesco,Dunnes Stores, SuperValu, Aldi, Lidl, House ofFraser, Harvey Nichols, John Lewis, Marks &Spencer, TK Maxx and Penneys.

- Consequently he is uniquely positioned toassist Multi in concluding complex transactionswith leading retailers.

If appointed Neil’s role will be to advise the development team on the form and layout of the development and ensure it works from a retailer and day to day management perspective.

He will also participate in concluding anchor deals and complex transactions to ensure that their requirements do not impact on scheme functionality or profitability.

BCL MSCSI MRICS ACI ArbExecutive Chairman

T: +353 1 647 7900M: +353 86 2591205E: [email protected]

19

THE TEAM

Jennifer MulhollandBSc Surv (Hons) MSCSI MRICSAssociate Director


- Jennifer is an Associate Director in the RetailAgency Department.

- She has over 9 years’ experience specialisingin Retail Agency and has an in-depthknowledge of the Irish retail market acting for awide variety of private clients and institutionallandlords in relation to retail lettings, sales andacquisitions.

- She acted as leasing agent on Dundrum TownCentre from 2008 until its sale to Hammersonand Allianz in 2016. She was responsible fordelivering a number of key retail lettingsincluding the first Michael Kors and Selectedstores in Ireland. She has also agreed leisurelettings to Beeftro, Funkey Monkey, TaneyRoast & Brew and Mooch.

- She has an in-depth knowledge of the retailmarket nationwide and at present is leadleasing agent on 7 shopping centres.

- Within the last 18 months Jennifer has delivereda number of high profile lettings to retailersincluding TK Maxx, The Works, Skechers,Starbucks and Pandora.

- She is key advisory to Sawbridge Limited inthe refurbishment, extension and repositioningof Swan Centre, Rathmines and has delivered15 new lettings since Q3 2014. She recentlysecured a 10,000 sq. ft letting to Fallon & Byrnewho are due to open in the coming weeks.

- She provides strategic acquisition advice to anumber of national and international retailersin sourcing new stores in their expansion drivein Ireland including Smiggle, Ann Summers,Ariella Fashions, McCabes Pharmacy andAungier Danger.

- Jennifer has just secured new flagshiplettings for Ann Summers and Smiggle withinBlanchardstown Centre.

- She understands retailer’s needs andrequirements at national and internationallevel and travels regularly to the UK to meetwith agents and retailers directly to ensure thecontinued delivery of new and exciting tenantsto Ireland. She attends all major retailer

conferences including Revo (BCSC), MAPIC and Completely Retail.

- Her clients include Irish Life, DavidsonKempner, Hudson Advisors, Davy, Tesco andSawbridge Limited. She has also acted forChartered Land, Crossridge Investments,Green Property and Deloitte.

- She is a member of The International RetailNetwork which has offices in the USA, UK,China, Germany, France, Spain, Czech Republic and Belgium. TIRN represent retailers such asInditex, H&M, TK Maxx, Brandy Melville, Uniqlo,Barnes & Noble, Hugo Boss, Nike, Wholefoodsand Fnac.

If appointed Jennifer’s role will be to attract both national and international retailers to Blanchardstown Centre using her in-depth knowledge of the market and retailer’s requirements to secure best in class tenants who will improve tenant mix and drive Zone A rents.

Bannon

Bannon by numbers

No.1Retail leasing

team inthe country

250Pieces of turnover

data collected every week/month

44Active retail

leasing instructions

150Retail lettings

in 2016

750Retail lettings

in last 5 years

4.5mSq. ft. of retail space let in last decade

23

Bannon’s Retail Credentials

- Bannon is the largest retail property firm in Ireland with over 60 dedicated personnel.

- Bannon employs the largest collection of retail specialists in the country.

- Bannon is the market leader in the sector since 2005.

- Bannon has been involved from inception through to pre-letting and opening of over 20 schemes.

- Bannon concluded 150 retail lettings in 2016 and more than 750 in the last five years.

- Bannon has advised on more retail developments than any other Retail Agency in Ireland. Our development team has advised on over 40 different retail developments across Ireland.

- Bannon has developed Ireland’s most comprehensive retail database including all 225 shopping centres & retail parks above 5,000 sq.m.

- Bannon lease more retail parks than any other agency in Ireland.

- In the past 5 years alone Bannon has completed Valuations on more than 50 large shopping centre schemes including Blanchardstown Centre.

- In the past 5 years Bannon has bought or sold 42 Shopping Centres and Retail Parks, more than any other agency in Ireland.

- The Bannon property management team collect and analyse over 250 individual pieces of turnover data on a weekly / monthly basis and cross reference these against national performance data and indices.

- Bannon is a founding member of The International Retail Network (TIRN) which is an association of a group of companies similar to Bannon who specialise in all areas of retail property consultancy. This extends our access directly to specialised agencies and investors in UK, USA, China, France, Germany, Belgium, Spain and Czech Republic.

BANNON

24

International ReachBannon don’t rely on associated offices for retailer introductions. We engage directly and meet with retailers and their retained representatives.

Sample of International Tenants with whom Bannon have agreed lettings:

25

International Reach

26

p Swan Centre, RathminesClient: Sawbridge LtdSize: 9,290 Sq MUnits: 35

p Pavilions Shopping Centre, SwordsClient: Chartered Land / IPUT / Irish LifeSize: 41,806 Sq MUnits: 85

p Dundrum Town Centre (2000-2016)Client: Crossridge Investments Size: 111,484 Sq MUnits: 160

p Ilac CentreClient: Irish Life / HammersonSize: 46,452Sq MUnits: 85

p Whitewater Shopping Centre, Newbridge (2008-2016)

Client: Grant Thornton / Ballymore PropertiesSize: 30,660 Sq MUnits: 87

p Mac Donagh Junction, KilkennyClient: Davy/Davidson KempnerSize: 17,683 Sq MUnits: 50

SAMPLE LEASING INSTRUCTIONS

27

p Marshes Shopping Centre, Dundalk

Client: Kennedy WilsonSize: 25,100 Sq MUnits: 46

pAthlone Town Centre

Client: Davidson Kempner Size: 17,200 Sq MUnits: 62

p South King StreetClient: Hudson Advisors Ireland/Lone StarSize: 6,039 Sq MUnits: 8

p Nutgrove Shopping Centre, Rathfarnham Client: Davy Size: 21,368 Sq MUnits: 69

p Douglas Village Shopping CentreClient: Shipton GroupSize: 21,368 Sq MUnits: 63

p The Square Town Centre, Tallaght (2008-2015)Client: AlburnSize: 53,000 Sq MUnits: 162


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p Navan Retail ParkClient: Targeted Investment OpportunitiesSize: 11,148 Sq MUnits: 10

p Gateway Shopping Park, GalwayClient: Targeted Investment OpportunitiesSize: 27,871 Sq MUnits: 14

p Bray Retail ParkClient: Targeted Investment OpportunitiesSize: 9,755 Sq MUnits: 7

p Phase 1 The Park Carrickmines (2009-2015)Client: Elm HoldingsSize: 28,000 Sq MUnits: 10

p Waterford Retail ParkClient: Targeted Investment OpportunitiesSize: 14,000 Sq MUnits: 8

p Sligo Retail ParkClient: Targeted Investment OpportunitiesSize: 21,368 Sq MUnits: 18


29

p Naas Retail ParkClient: Targeted Investment OpportunitiesSize: 13,936 Sq MUnits: 8

p Drogheda Retail ParkClient: Targeted Investment OpportunitiesSize: 25,084 Sq MUnits: 15


Understanding Blanchardstown Centre

UNDERSTANDING BLANCHARDSTOWN CENTRE

33

35 Hectare Site

High Occupancy Rate c. 98%

2 Adjoining Retail Parks - 38,000 sq. m.

Frequency of Visits -52 times a year

112,000 sq. m. Retail and Leisure Space

17 million Footfall Annually

9 Screen Cinema

Avg Retail Spend of €163.00 incl Grocery

180 Shops

Extensive Catchment of over 2 million people, Core Catchment Population of 660,862

7,000 Free Car Spaces

Higher than average dwell time of 127 minutes

Overview


Average sales density of top 15 S.C. tenants is > €7,125 per sq. m.

34


Blanchardstown Centre – Tenant Mix

Blanchardstown Centre opened in 1996 and being 21 years old requires modernisation and investment to bring it in line with similar regional centres of its stature and dominance. The Centre benefits from a strong tenant mix appealing to a broad shopper profile albeit the ability to renew and revitalise this tenant mix has been hampered by the scheme’s ongoing success with 61 of the current tenants in occupation from the original leasing programme.

The retail parks provide a strong draw for a more diverse customer base and are a key component to the success of Blanchardstown Centre. The mixed use and bulky goods offer provides a balanced tenant mix and together work as a destination for the catchment. New entrants to the market and international operators should be targeted to ensure that a point of difference is maintained and enhanced in order to increase penetration to the catchment.

The shopping centre has a higher than average anchor representation, by floor area, of 47%. This takes into account Dunnes Stores who own their store. This is above the ideal target of 33% Anchor stores, however on an income (leasehold only) basis this is a more aligned figure of 33%.

The representation of MSUs is below what would be expected for a scheme of this size and market position. The lack of right sized stores within the centre has seen some of the potential MSU occupiers migrate to the surrounding retail parks. This spread of users across such a large site can impact negatively on the shopper experience. It also makes it more challenging for the retailers to understand where they belong within the scheme.

35


Unit Classification By Floor Area

Blanchardstown Main MallLevel 1&2 (incl. Dunnes)

Blanchardstown Main MallLevel 1&2 (excl. Dunnes)

33%

47%

Anchor

MSU

SSU

F&B

Leisure / Cinema

Anchor

MSU

SSU

F&B

Leisure / Cinema

24%

30%

8%9%

20%

6%7%

16%

33%

47%

Anchor

MSU

SSU

F&B

Leisure / Cinema

Anchor

MSU

SSU

F&B

Leisure / Cinema

24%

30%

8%9%

20%

6%7%

16%

33%

47%

Anchor

MSU

SSU

F&B

Leisure / Cinema

Anchor

MSU

SSU

F&B

Leisure / Cinema

24%

30%

8%9%

20%

6%7%

16%

33%

47%

Anchor

MSU

SSU

F&B

Leisure / Cinema

Anchor

MSU

SSU

F&B

Leisure / Cinema

24%

30%

8%9%

20%

6%7%

16%

36


Uses over represented


Average

Cosmetics &Pharmacy

2%

4%

6%

8%

10%

12%

14%

Jewellery &Accessories

Phones, Electrical& Musical

Services Gifts, Books andNewsagents


Average

LadiesFashion

2%

4%

6%

8%

10%

12%

14%

UnisexFashion

Lingerie Homewares Kids and Games

CasualDining

LeisureSports

These graphs detail uses under or over represented when compared to other regional centres including Dundrum Town Centre, Trafford Centre, Westfield London, Westfield Stratford and Bluewater.

37


Uses under represented


Average

Cosmetics &Pharmacy

2%

4%

6%

8%

10%

12%

14%

Jewellery &Accessories

Phones, Electrical& Musical

Services Gifts, Books andNewsagents


Average

LadiesFashion

2%

4%

6%

8%

10%

12%

14%

UnisexFashion

Lingerie Homewares Kids and Games

CasualDining

LeisureSports

38


From analysis of unit numbers within the main centre, with reference to comparable Irish and UK centres, there is a higher than average representation of non-fashion/serviced based uses.

By contrast there is a significant under representation of fashion uses and casual dining offers. This creates identifiable gaps in the mix including a standalone lingerie offer over and above the recent Ann Summers letting. There is also an opportunity to improve the fashion offer by adding more ladieswear, boutique stores and unisex fashion brands. These tenant mix gaps create an opportunity to provide a more fulfilling customer experience whilst profitably delivering new tenants for Multi.

The lower than average homewares representation in the mix analysis is very well represented in the retail parks with 11 homeware and electrical offers, the most comprehensive collection in the country. The leisure offer does not reflect areas outside of Multi’s ownership, namely Leisureplex.

A clear area to improve the overall mix is to add further casual dining offers which is currently well the below average. This is an important part of major shopping schemes and would improve dwell time and enhance the overall experience.

There were 14 lettings in 2015, 5 on Level 1 and 9 on Level 2. Notably none of these lettings were to major international brands that would enhance the existing tenant mix and create a point of difference. New lettings in 2016 to Sostrene Grene, Ann Summers, Lifestyle Sports and Disney have started to correct some of the areas of under representation within the centre; however there is still a requirement for a much greater re-balancing of the tenant mix.

A detailed and robust letting strategy, in conjunction with Multi and in line with Multi’s business plan, needs to be created and implemented for the Centre as the current tenant mix is fragmented and there is a lack of clustering.

Uses under/over represented continued...

39


This strategy should include:

- Further analysis of the tenancies with reference to expiring leases or break options, under-performing tenants and vacant units.

- Further analysis of the tenant mix to identify gaps in the mix of both the main centre and the retail parks.

- Identification of Best in Class tenants to fill those gaps.

- A focus on new to Ireland brands to broaden the international profile of Blanchardstown Centre.

- Ensuring each new letting improves on Zone A targets.

- The need to be cognisant of the future master plan to ensure that new deals tie in with the overall plan for future development.

By clearly demonstrating to potential occupiers the gaps that exist in the mix Multi will capitalise on retailers’ enthusiasm to fill these gaps whilst also improving the customer experience and driving more spend into the scheme. Clustering of uses creates a better shopping experience for customers as well as providing retailers with comfort on adjacencies.

Locating similar retailers within pre-defined areas will identify the right location for each target tenant ensuring maximum rent and maximum return for Multi whilst also improving customer experience.

Letting Strategy

The Evolution of Blanchardstown Centre

42

“Knowing the correct mix of elements to deliver the best end result”

43

The Evolution of Blanchardstown Centre

EVOLUTION

Blanchardstown Centre opened in 1996, of the current occupiers 61 are from the original leasing programme. The lack of evolution in the tenant mix is despite the complete revolution within the retail sector over the last 21 years. Blanchardstown Centre has not benefited from new entrants to the Irish market as much as other schemes have, for instance when Blanchardstown Centre opened approximately 40% of the tenants that now trade in Dundrum Town Centre were not available to the Irish customer.

To some degree Blanchardstown Centre has been a victim of its own success, by providing profitable platforms for retailers to continue trading. The turnover of tenants has been very low which has led to stagnation in the tenant mix.

In 2007 Blanchardstown Centre and Dundrum Town Centre were achieving the similar Zone A rates. By 2015 Blanchardstown Centre was only achieving 70% of the rents being achieved in Dundrum Town Centre.

There is no reason, in our view, why Blanchardstown Centre should take second place to Dundrum Town Centre. Whereas Dundrum Town Centre is now 12 years into a 25 year lease cycle Blanchardstown Centre

has only 4 years left to lease renewals and has a clear opportunity to develop.

The opportunity afforded by the development of the Yellow Mall, in a better configuration than the planning granted scheme and the expiry of 60 leases between now and 2021, is unique in terms of the ability to redefine the tenant mix of the Centre. The redefinition of the mix can allow Blanchardstown Centre to become Ireland’s most valuable retail asset once again, a position it enjoyed up to 2010.

Delivering on the opportunity afforded by the lease expiries and the proposed Yellow Mall extension requires a leasing and development consultancy team with a proven track record of delivering value for landlords. Bannon is uniquely positioned to offer this experience.

The retail parks need to continue to provide a compelling reason for customers to visit Blanchardstown Centre and as part of linked trips continue to be a destination for all shoppers. Care needs to be taken to ensure there is synergy between the retail park and mall lettings in order to prevent any cannibalisation of spend or fragmentation of footfall. There is a unique

opportunity provided by the retail parks to both attract open use tenants who cannot afford mall rent and also as a mechanism to enhance an overall tenant mix by decanting users from the mall to the retail park units.

The creation of a tenant mix is not formulaic as it requires an understanding not just of what an individual retailer delivers in terms of customer experience but also of what the combination of different tenants in different locations delivers as a whole.

The combination of retailers in the correct quantum, location, profile and format is what creates the picture that the customer sees. At Bannon we put ourselves into the customers mind-set and see the tenant mix in a holistic context. The goal therefore is that customers will see Blanchardstown Centre as an experience to be enjoyed and frequented, as opposed to being a collection of individual tenants within a 35 hectare campus.

A well-conceived and comprehensively implemented tenant mix strategy will re-define what Blanchardstown Centre means as a brand to the customer.

60 leases to expiry by 2021 with a combined floor area of 8,500 Sq M

44

Sample target tenants from 2017 thru 2021

EVOLUTION

(Flagship)(Flagship)

“All retail is local” “Use our experience to maximise your value”

47

EVOLUTION

Using Bannon’s retail DNA to the benefit of Blanchardstown CentreRetail is a complex asset class. It is heavily dependent on a number of unique characteristics and interactions between the asset, its catchment, customer profile and retailer mix.

In this context Blanchardstown Centre requires its own “Leasing Sales Story” as an explanation to retailers as to why they will profit by occupying a store in the centre. To build this story requires expertise in a number of areas, namely Retail Agency, Asset Management and Property Management.

This integrated approach to leasing retail assets has worked extremely well for Bannon particularly in similar schemes.

The traditional approach to convincing retailers to take space has been replaced with the need to demonstrate the solid business opportunity any retail unit represents. This goes beyond catchment analysis and requires in-depth real time knowledge of how retailers perform in different locations.

The leasing up strategy will be controlled to create new rental tones and ultimately drive rents throughout the centre.

The combined opportunity of the lease expiries and the Yellow Mall extension will create the opportunity for the clustering of tenants designed around customer experience. We will target a range of new and relocated occupiers so that the net impact of the Yellow Mall will be felt across the entire scheme, not just on Level 2.

The initial focus in letting the Yellow Mall will be the Anchor store. This will be followed by key lettings that will set the tone of the mix within Yellow Mall. These tenants will deliver footfall into key areas along the mall.

During this initial letting stage we will start to enhance the tenant mix in the entire centre and capitalise on the provision of the most modern and best configured retail space in any shopping centre in Ireland. The lettings will be about placing the right retailers in strategic locations that will attract other retailers and enhance footfall and ultimately lead into rent driving deals.

The creation of such a good quality and exciting tenant mix and the ultimate enhancement of the centre as a whole, along with the provision of the best retail units, will create and drive demand within the market. Upon completion of the Yellow Mall, Level 2 in Blanchardstown Centre should be the most compelling collection of retailers in a single circuit within the Country. The quality of adjacencies, along with the biggest and best retail offer in Ireland and the ability to control supply, will drive competitive tension and ultimately rents. From our experience in the leasing up of a number of key shopping centres, throughout the letting process, rents grow from initial lettings as the occupancy and tenant mix evolve. For example, we achieved growth of over 30% in Zone A rates during the pre-let phase in Dundrum Town Centre.

By the first rent review in 2010 Dundrum Town Centre’s value exceeded Blanchardstown Centre’s for the first time. Despite the great retail recession, rents have grown from €3,650 at the 2010 reviews to €4,500 Zone A psm today.

Why Bannon?

51

Why Bannon?

WHY BANNON?

When Bannon act as the agent on a retail scheme we constantly benchmark the tenant mix against other similar and aspirational examples. From this analysis we identify any gaps in the tenant mix or areas to enhance or increase certain use types. Following the identification of these gaps we then identify Best in Class retailers/operators who will fill these gaps and arrange direct meetings with those target occupiers. We then achieve lettings to these Best in Class operators. We also create a balanced mix of Food and Beverage operators to target the various requirements from customers. This will cover all day offerings from breakfast through lunch and on to evening meals, while also creating a “grazing” offering for shoppers.

A good mix of coffee shops, family dining, casual dining and finer dining/table service offers together with an enhanced leisure offering will create a more balanced offering for customers, enhance dwell time and increase penetration into the catchment.

Bannon is the only team who have been involved in the successful creation of a quality F&B mix alongside a major Irish Shopping Centre.

When we meet new entrants to the market we sell the Irish story first. We explain the underlying fundamentals of the economy and the macro picture. We also give them an understanding of comparable retail densities in the entire market, not just scheme specific.

We understand the complexities involved when a retailer opens their first store in a new market and are sensitive to their issues including logistics, new currency set up, creating new shop fit teams and of course understanding the different micro markets within the country.

The key communication to retailers is to demonstrate that they will derive healthy trading profits from the scheme. The role of the leasing agency team in Blanchardstown Centre will be to show why the centre is the best conduit through which retailers can access the growing and dynamic Irish economic story.

Blanchardstown Centre has the advantage of being able to demonstrate growth in both wealth and population within its catchment with an explosion of house building and job creation taking place. This knowledge and understanding has been proven by the numbers of new entrants that we have been able to bring to Ireland as well as the retailer acquisition roles that we have won.

53

WHY BANNON?

The Revolution in Retail

Bannon understands that the internet and the emergence of the Omni-Channel Retailing platform are changing store formats and retailer requirements. Retailers now want access to stores which allow them to access a large geographical base and present their stores in a format that enhances their brand awareness and supports their online sales platform. Stores are becoming more fun places for customers to interact with product ranges in a manner that cannot be delivered through a phone or tablet.

Blanchardstown Centre can capitalise on this revolution in how retailers interact with their customers by targeting flagship formats reducing the need for retailers to have stores in other shopping centres.

In addition to store format there is a need through the tenant mix to make sure that the centre as a whole is an entertaining and engaging place for customers to visit.

They need to be entertained, stimulated and pandered too from the moment they leave their home to the moment they arrive back. This focus on driveway to till experience is key in positioning Blanchardstown Centre at the top of the requirement list for retailers competing in an online world. Bannon understands this dynamic and can communicate the advantages Blanchardstown Centre has in this context.

“We speak retailers language”

55

WHY BANNON?

Conclusion

We have the Largest Assembly of Retail Real Estate Expertise in IrelandThe Bannon approach is to use the synergy between best in class Retail Leasing, Retail Asset Management and Retail Management teams to provide us with a clear advantage in attracting retailers to the schemes with which we are associated. There is a clear and logical linkage between understanding how an existing retailer trades in one of our centres and seeking to demonstrate to a new tenant why they should locate alongside them.

What Retailers wantWe have adopted a model of listening to retailers and have used the opportunity created by the recession in the retail trade to develop a sophisticated and detailed understanding of how different retailers make money. We appreciate why certain locations work better for some retailers better than others and how the combination of different tenants and users can be constructed to maximise the return for all. It is this understanding of how retailers make money that allows us to communicate to them in their own language about the opportunities to trade in the schemes we lease.

Fast Changing MarketRetail is the most dynamic sector of real estate because the property needs to react to fast changing and sometimes fickle consumer demands. Bannon is best positioned to advise Multi on this sector because we are more immersed in it than any other candidate. We manage, lease, review, value buy and sell more retail property than any other agency.

What you see is what you getThe team we are putting forward have been together for almost a decade. They are the team that will meet with your design and leasing team. They are the team that will meet with, pitch to and negotiate with the retailers on your behalf and they are the team that will sit with your legal team to get deals over the line. The task will not be outsourced or shared with different offices. The team you see is the team you get and they are the best team in the market.

Contact Information

Registered Name: Bannon Commercial Property Consultants Ltd. Trading as “Bannon”. Registered Address: Hambleden House,19-26 Lower Pembroke St., Dublin 2.

PSRA Number 001830

Darren PeavoyExecutive DirectorTeam leaderRetail Agency & Development


Neil BannonExecutive ChairmanDevelopment and Strategy


Jennifer MulhollandAssociate DirectorRetail Agency


3rd february 2017 · 3rd february 2017 joint agency proposal to by. dear mark, ... bimba y lola,...

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