The proposed sale of the building that houses McDonald’s Restuarant in Longford will have no impact on the business’ long term future.
Seamus Rawle, who heads up the busy Longford town outlet, was keen to get that message across following confirmation of the property’s impending sale.
“The building is for sale, but I have a leasehold agreement as opposed to a freehold one with many more years of a contract still there. It (sale) doesn’t affect the restaurant whatsoever which is trading very well. The bottom line is McDonald’s will still be there in 30 years time,” he said.
Allocated what’s believed to be a price tag in the region of €1.15m, the property is let to McDonald’s Restaurants of Ireland under the terms of a 25-year lease from December 2001 subject to an annual rent of €90,000 a year. According to CBRE, if it were to sell for the estimated price, the investment could generate a net initial yield in the order of 7.5pc.
A great deal of that belief is centred on its location. Overlooking the N4 national primary road which connects Dublin with Mullingar, Longford and Sligo, the property forms part of the N4 Axis Retail Park, offering generous parking in a facility that also includes the likes of Homebase, Halfords, Argos and Carephone Warehouse.
The stand-alone building consists of a single-storey restaurant extending to 290sqm in total. The restaurant meanwhile, has a well laid out seating area, kitchen food preparation space and toilet facilities.
After opening its first store in Ireland in 1977 on Dublin’s Grafton Street, McDonald’s has steadily grown, so much so that it now boasts 81 stores nationwide. In 2011, the group reported an overall turnover of €77m and a profit of €11m.
Natalie Brennan of selling agents CBRE said interest in the property from both at home and abroad is expected to emerge over the coming days.