It has been sold on behalf of the former owner, described as an ‘overseas investor with Cork ties’.
This investor it would appear, now wants fewer Cork ties, so he successfully put the landmark property on the market.
The eagle-eyed may have already experienced a growing sense of déjà vu and if so, their suspicions are entirely correct.
This property did indeed come to market, and was successfully sold, back in 2014.
At that stage, the property was purchased for over €4m. Brian Olden and Rob Coughlan of Cohalan Downing last week sold it on to Davy Real Estate on behalf of the Davy Irish Property Fund.
This time around, the property fetched €5.5m, reflecting an initial yield of 6.4%, highlighting an ever-strengthening demand for central Cork retail premises.
This particular McDonald’s branch has been in this highly-visible Winthrop Street stand since 1985.
The property is let on a 35-year lease from April 1985 on FRI terms with five-yearly upward-only rent reviews, and a current rent of €372,000 p. a.
With just four years remaining on the current lease, the purchaser is likely working on the premise that McDonald’s is unlikely to wish to move from this visible high-street location.
It would therefore be hopeful of significantly strengthening the covenant when the current term runs out.
Retail rents on Cork’s main thoroughfare have been strengthening rapidly over the past few years, following a prolonged period of decline and stagnation.
Central Cork is also undergoing significant renewal and renovation which is likely to further increase footfall and rents.
“The location is prime, a few yards off St Patrick’s Street with major footfall, and McDonald’s is one of the best covenants in the world,” said Mr Coughlan, when promoting the investment last time around.
The attraction hasn’t changed appreciably since, even if the price has.
The property has 35’ frontage to Winthrop Street, access to Winthrop Lane with 10,000 sq ft of space, 3,530 sq ft of which is located on the ground level.
The property also contains a range of ancillary stores, staff areas and office accommodation on the second and third floors.
Brian Olden says the property attracted significant interest from local, national and institutional type purchasers.
“This is a strategic location, on one of the busiest streets in Cork City Centre,” Mr Olden said.
It was a combination of its excellent location together with a strong covenant and an excellent building which generated a sale price of €5.5m,