There was strong interest in this Winthrop Street property, leased by McDonald’s, which was bought by over €4 million by a private investor.
In the end, there was a bit of a bun fight for a multi-million euro investment property, with McDonald’s as tenants, in Cork city’s Winthrop Street.
Fifteen sets of documents went out to intending suitors for the prime investment, which came to market on Valentine’s day this year.
The property at 4, 5 and the upper levels of 6 Winthrop Street by Brown Thomas, near Patrick Street, had a €3.5 million guide quoted by estate agent Maurice Cohalan, who described it as blue chip.
He sold for Dublin-based investors, and the eventual buyer is described as a private investor, based overseas but with Cork links.
The exact selling price wasn’t disclosed, but is likely to be over €4m. McDonald’s have been trading at Winthrop Street since 1985, and there is six years left to run on the current lease, under upward only terms. Current rent is €372,000, and the yield to its new owner is c 8.5%, but this may change in six years time when the lease is up — it’s unlikely McDonalds will want to move.
“The location’s prime, a few yards off St Patrick’s Street with major footfall, and McDonald’s is one of the best covenants in the world,” asserted Mr Cohalan, back when launching the investment.
It’s one of two in the city, with several others in the suburbs — and 34,000 outlets globally, in 118 countries. McDonald’s opened in Cork initially as a franchise, and was bought back several years ago. (See planning opposite)
The property has 35’ frontage to Winthrop Street, access to Winthrop Lane and has 10,000 sq ft, with about 3,500 sq ft at ground level.
It was sold by tender, but the closing has only just occurred.
“It shows there’s a lot of private investment money out there chasing good quality covenants. Unfortunately, there are very few investments as good as this out there to sell right now.
“The interest came from the UK, Ireland and Cork — and there were 15 sets of tender documents issued and a number of disappointed underbidders.
“There’s a scarcity of investment properties out there at this time and there’s a considerable amount of cash buyers chasing few opportunities,” noted Mr Cohalan.
* Details: Cohalan Downing, 021-4277717
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