Goldman Sachs has agreed to sell Blanchardstown Centre, Ireland’s largest shopping mall, to Strategic Value Partners (SVP), a credit firm based in the United States. This sale comes at a time when investor interest in shopping malls is increasing, spurred by declining rental prices and a rise in consumer spending.

The transaction, still pending completion, follows Goldman Sachs’ initial offering last year of approximately €650 million for the mall. However, sources indicate that the final sale price may be lower than this figure. Goldman had previously acquired the shopping center from Blackstone in late 2020, valued then at around €750 million. Blanchardstown is a significant retail hub, featuring 180 stores and restaurants, attracting about 16 million visitors annually.

After several years of disruption caused by online shopping, physical retail spaces are once again becoming appealing to investors. With rental prices dropping, shop spaces are more accessible, allowing tenants greater stability in their financial commitments. Dublin has experienced 14 consecutive quarters of rising consumer spending, as per local government data, further bolstering retailer confidence.

Sue Munden, a senior analyst at Bloomberg Intelligence, noted that capital values for top shopping centers across Europe have decreased by over 40% since their peak. This trend, combined with an increase in rental prices for high-quality malls, indicates potential for value recovery, particularly if yield stabilizes. This transaction represents an evolving landscape in retail investment, emphasizing the renewed allure of brick-and-mortar shopping locations in a digital age.