Shopping centre in Londonderry sells for £27m

Shopping centre in Londonderry sells for £27m

Savills Northern Ireland has completed the sale of the iconic Foyleside Shopping Centre in Derry/Londonderry, in Northern Ireland, a prime retailing destination in the city, on behalf of its client, for £27m.

The prominent shopping centre, in the regional retail capital of the North West of Northern Ireland, was developed in the early 1990s and officially opened its doors in 1995. The shopping centre was acquired by private investors.

Ben Turtle, Head of Savills Northern Ireland, comments: “We are thrilled to confirm the completion of Foyleside Shopping Centre’s sale, a significant transaction highlighting the buoyancy and resilience in the retail sector of Northern Ireland. This centre has been a retail cornerstone in Derry/Londonderry, offering an exceptional and diversified shopping experience to the millions who visit annually.”

Donall McCann, on behalf of the new owners, comments: “Foyleside has provided the premier retail offering to the people of Derry and surrounding areas for over 30 years. As investors and asset managers we have a firm belief in the importance of physical retail and are excited at the opportunity to work with existing and new occupiers to further enhance the offering at Foyleside.”

As a locally based group of investors, we are delighted to add the centre to our portfolio and look forward to shaping its future. It is a testament to all of those involved back in the early 1990s who helped to deliver to the North West region what is still recognised today as one of Northern Ireland leading centres – under our stewardship we intend to continue that legacy.”

Foyleside Shopping Centre extends to approximately 364,637 sq. ft arranged over four levels and comprises 53 units, including three anchor units and six food court units. It is anchored by renowned retail giants: Frasers, Marks & Spencer, and Dunnes Stores, and boasts an exceptional range of retailers including Next, H&M, Boots, Holland & Barrett, Monsoon, Waterstones, DV8, and River Island. The centre has maintained high occupancy levels, with over 98% of the scheme let, and saw footfall exceeding 7.5 million in 2022.

According to Savills, a number of opportunities exist for the new owner to enhance the value and drive rental income at Foyleside, including potential development of leisure, residential, and office spaces and exploration of lease re-gear opportunities to secure long-term commitment of retailers. There’s also an opportunity to enhance the catering offer by attracting new multinational brands and potentially developing a multi-screen cinema on the rooftop of the existing east car park.

Ben Turtle adds: “Foyleside Shopping Centre is not just a retail destination but a landmark in its own right. The combination of strategic location, strong tenant line-up, and development potential makes it a pivotal asset in the Northern Ireland retail landscape. We are confident that the new owners will continue to harness its potential and elevate the shopping experience for all visitors.”

Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!