Sales of Irish retail properties reached €402m last year

Not only do these figures represent an 8pc increase on 2022 but it was also the highest ­annual total recorded in both volume and number of transactions since 2019.

These are among the findings in Cushman & Wakefield’s latest report on the retail sector.

Karl Stewart, director at Cushman & Wakefield, saw an ongoing increase in investor interest in the Irish retail property market throughout the year, “as improving market fundamentals surrounding the retail sector and its asset types have contributed to increased investment volumes”.

Retail assets accounted for close to 19pc of overall investment turnover in Ireland in 2023, up significantly from just over 8pc in 2022.

But that increased market share also reflected a drop in sales of other types of properties, including offices and apartment blocks.

The most sizeable retail transaction of the year was the sale of a portfolio of six shopping centres in the third quarter to a fund managed by Davy Real Estate.

It paid €74m for the Hexagon portfolio, a collection of six shopping centres including Donaghmede in Dublin, Parkway in Limerick and others in Galway, Laois, Letterkenny and Louth.

Formerly part of Pat Doherty’s Harcourt Developments, the portfolio had originally been put on the market for €100m.

Davy also acquired Marshes Shopping Centre in Dundalk for €29m, about €15m less that what the vendor, Kennedy Wilson, paid for the Marshes in 2014.

Other deals of note in 2023 included the sale of two regional retail parks, City East Retail Park in Limerick and Blackwater ­Retail Park in Navan, to US investor Realty Income for a combined value of €45.9m. French investor Inter Gestion Reim bought B&Q Liffey Valley for €26.6m.

These investment deals have been underpinned by demand from retailers seeking to rent space. New brands located in Dublin’s Grafton Street area, such as ­Chupi on Clarendon Street, while recent announcements indicate that Pitch, Castore, Carhartt and Rains are set to occupy space in 2024. On Dublin’s Henry Street, US giant Bath & Body Works opened an outlet within Next, and the Blanchardstown Centre welcomed Calvin Klein and Lego, while both Miele and H&M Home opened in Liffey Valley.

Dunnes Stores opened its latest store in the Dundrum Town Centre.