The Dublin licensed property market throughout 2023 was somewhat subdued when compared with the sales activity of the two previous years.
The impact of rising interest rates, challenging debt-market conditions, substantial overhead increases (particularly energy) and the shortage of skilled staff all took their toll. In 2023, just 17 licensed premises changed hands with a capital value of €31.8 million. This compares with 30 pubs changing hands in 2022 with a capital value of about €97 million, representing a 67 per cent decline in the value of activity and a 43 per cent drop in the number of deals.
The first quarter of 2023 saw the completion of several pub sales which had been launched to the market in the third and final quarters of 2022. The well-known and famous Abbey Tavern in Howth, one of Ireland’s oldest traditional taverns, was sold for a price close to €2 million by fourth-generation publican Richard Tobin and acquired by Drogheda-based publican Jay Egan. The receiver sale of the Barge on Charlemont Street also concluded for a price believed to be in the region of €3.5 million. It was acquired by Donegal publican Declan Bayle of the McCafferty bar group. Since its acquisition, this famous watering hole overlooking the Grand Canal has been revamped and refurbished to provide new lounge bar facilities.
Other licensed premises to sell during the first and second quarters of 2023 were the Four Provinces, Kimmage, McCloskey’s Donnybrook and the Clock on Thomas Street.
The trend of off-market deals, which was a feature of the market during 2022, continued with several high-profile and notable licensed premises changing hands. In the city centre, 4 Dame Lane was sold for a price believed to be in the region of €5 million, the highest price paid for a pub in Dublin this year. The property was acquired by experienced publican Paddy McGowan, who also owns the famous McGowan’s in Phibsborough and McGowan’s/Bad Bob’s in Temple Bar which recently won the award for best late-night bar at the Irish Pub Awards. The vendor, Paul Keaveny, owner of Dakota and the Odeon, was not resting on his laurels as he also added another pub to his portfolio with the opening of a new bar on Drury Street which he named Ciss Madden’s after acquiring the interior fittings of the now-demolished Ciss Madden’s in Donnybrook. The new Ciss Madden’s opened its doors during the summer after a superb remodelling and repurposing of the unique building on Drury Street was completed.
Other pubs to change hands privately were the Terenure Inn, Terenure; McLoughlin’s, Dún Laoghaire and Gunpowder, Clondalkin village.
The final quarter of 2023 saw a flurry of activity with several pubs changing hands ahead of the busy Christmas trading period. A key feature of these sales was that they were acquired by long-term publican families who, despite the headwinds faced by the sector, were expanding their pub empires with confidence. The Headline Bar on Clanbrassil Street, which was brought publicly to the market and attracted more than 90 enquiries, reflecting the rising popularity of this area, was sold by the McNally family, and was acquired by the Kinsella family for about €1.7 million. Other pubs to change hands were the Golden Ball, Enniskerry Road, acquired by the Lawlor family for about €1.5 million; Brú House in Fairview acquired by publican Graham O’Malley for about €1.4 million and the Glen of Aherlow, Inchicore, acquired by Trevor O’Shea for a price in the region of €900,000.
These acquisitions by these long-term publican/publican families represent a vote of confidence in the licensed trade going forward.
John Ryan is head of the licensed and hospitality division at BDM Property
