The buoyant Dublin retail investment market is to be tested again with the planned sale of the McDonald’s fast food building in the centre of Temple Bar.
Kevin McMahon of Savills is guiding €6.25 million for the building on Temple Bar Square which will give investors a net initial return of 5.36 per cent.
The 1880s building owned by Fitzers Holdings is let to McDonald's on a 20-year lease from April 2013, at €350,000 a year.
A 10-year break option will give investors a trading certainty for at least 6.9 years.
Temple Bar’s continuing buoyancy as a tourist area will appeal in the longer term to McDonald’s which has been trading in Ireland since 1977 and now has 83 restaurants across the country. The Irish business had a sales turnover of €80 million in 2014, giving the Irish operation a net worth of about €117 million.
McDonald’s has upgraded the period building in Temple Bar which has dual frontage and an overall floor area of 790sq m (8,500sq ft).
It is ideally located on the corner of a constantly busy square.
Temple Bar has greatly benefited from the pick up in tourism numbers over the past three years and is expected to do even better when the extended Luas opens new stops at Trinity College and Westmoreland Street.
