McDonald’s building up for sale

The McDonald's building in Longford town is expected to attract interest from both the domestic and international property markets.
The building that houses Longford town’s busy McDonald’s fast food outlet has been put up for sale.

The building that houses Longford town’s busy McDonald’s fast food outlet has been put up for sale.

Selling agents CBRE are understood to be quoting a price in the order of €1.15m for the premises which equates to a net initial yield in the order of 7.5%.

The subject property comprises a high profile location overlooking immediately onto the (N4) national primary road which connects Dublin with Mullingar, Longford and Sligo. The property forms part of the N4 Axis Retail Park which is anchored by Homebase, and includes other retailers trading in the park such as Halfords and Argos.

The subject property comprises of a single-storey restaurant built in 2001 extending to approximately 290 sq m in total which rests on a site extending to 0.105 HA. The property is laid out to provide a restaurant seating area, kitchen food preparation area and toilet facilities. The property is let to McDonalds Restaurants of Ireland under the terms of a 25 year lease from 12th December 2001 subject to an annual rent of €90,000 per annum.

McDonalds originally opened its first store in Ireland in 1977 on Grafton Street, and since then have grown the business to over 81 stores nationwide. In 2011, the group reported an overall turnover of €77m and a profit of €11m.

According to selling agents CBRE, a strong level of interest is anticipated to emerge in the property following news of its proposed sale. “In Q1 2013, there has been over €336m spent on the purchase of investment properties which substantiates the continued growing demand from investors in the market place for good quality investment properties,” said a spokeswoman.