Sales of public houses not affected by smoking ban

AS the smoke settles on the pub trade it emerged last night that record deals on public house sales are being closed.

The latest round of pub sales show pub values skyrocketing - despite a drop in sales and the smoking ban - €85 million was spent buying bars in Dublin alone since January.

Property consultants CB Richard Ellis Gunne’s review of the Dublin pub sale market since January shows that more bars, worth more money were sold in the first half of this year than in all of 2003.

“The first half of 2004 has seen 26 pubs changing hands with a capital value of €85m. These results will be very encouraging at a time of increased uncertainty in the trade. Indeed the price to turnover ratio has remained strong at 2.5 to 3.0 times turnover and the average price has risen slightly to €3.2m, from a year end 2003 average of €3m,” the review states.

The bulk of the sales have taken place in the second quarter with just five pubs sold in the first three months.

The biggest deal so far this year came when the Playwright Inn, Blackrock, Dublin sold at auction for a record €8.1m.

“These results are all the more surprising as they come against a backdrop of the smoking ban and its effects, shifting consumer patterns towards more home consumption and a proposed codification of the licensing laws which could herald further licence deregulation.

“Pub life as we know it has changed radically over the past 18 months. The next six months are likely to see further dramatic changes,” CB Richard Ellis Gunne predicted in the review.

The auctioneering firm believes the full effects of the smoking ban will become evident as full year results are collated.

“These are likely to show drink sales in some Dublin pubs falling by as much as 20%, particularly those without a patio or beer garden,” they added.

Justice Minister Michael McDowell, CB Richard Ellis Gunne noted, has commenced his codification of licensing legislation to simplify the law and make it more user-friendly and up to date.

“This codification process is likely to generate considerable debate in the trade and is likely to receive considerable attention from publicans,” they said.