Carluccio's to reopen as landlord agrees to cut rent

 

CARLUCCIO’S RESTAURANT in Dublin has negotiated a reduction in rent that will see it reopen for business next week, it was announced last night.

The restaurant closed earlier this week and said it would not be reopening unless it could secure a rent reduction. The operator, Carluccio’s Ireland Ltd, said it had been seeking a rent reduction since early 2009.

The former chairman of AIB, Dermot Gleeson SC, is a member of the partnership that owns the premises. The partnership bought the premises in December 2006 for €20 million and entered into a 20-year lease with Carluccio’s, at an annual rent understood to be €680,000.

Sixty people are employed in the restaurant, located on the corner of Dawson Street and Duke Street.

“Carluccio’s Ireland Ltd and its landlord wish to confirm that following very constructive engagement this week, agreement in principle has been reached on a revised rental agreement,” the parties said last night.

“Carluccio’s is confident that as a result of this agreement, the restaurant will be in a position to reopen early next week.

“Carluccio’s recognises that current market conditions are extremely difficult for landlords, who have financial obligations to banks and tenants alike, and wish to acknowledge the constructive response of the landlord in these discussions, who were represented by D2 Private.”

Documents in the Registry of Deeds show that a mortgage taken out with Bank of Ireland and registered against 11 and 12 Duke Street and 52 Dawson Street involved the following owners and shareholdings: Bryan McSharry, Dublin 4 (2.36 per cent); Brooklawn Property Holding Company Ltd (9.46 per cent); Jonathan FitzPatrick, Greystones, Co Wicklow (6.76 per cent); David O’Rourke, Donnybrook, Dublin 4 (4.73 per cent); Peter Small, Blackrock, Co Dublin (3.38 per cent); Philip Munnelly, England (9.46 per cent); Dermot Gleeson (6.76 per cent); Tom O’Connor, Shankill, Co Dublin (4.73 per cent); Alison Rohan, Rathmines, Dublin (1.35 per cent); Deirdre Foley, Ranelagh, Dublin 4; David Arnold, Foxrock, Dublin; and Brendan O’Mara, Stillorgan, Dublin.

The last three partners in the list had a 49.66 per cent shareholding between them.

D2 Private was founded by Ms Foley and Mr Arnold. Mr O’Mara is a non-executive director of the firm and founder of the Bruce Shaw quantity surveying firm.

Mr McSharry is a director of Celtic Foods Trading House, a company owned by Ray McSharry and his family. Brooklawn is associated with the Crampton family. Mr FitzPatrick is a son of former Anglo Irish Bank chairman Seán FitzPatrick. Mr O’Rourke’s profession is not known. Mr Small is a property investor. Mr Munnelly is associated with Munnelly Support Services in Harrow, England.

Mr O’Connor is a solicitor and a director of Docklands Community Trust. Ms Rohan signed the mortgage documents as attorney at law for members of the partnership.

Carluccio’s Ireland is owned by Ron Bolger, chairman of Irish Food Processors; Peter Murray, a former chairman of Anglo Irish Bank; and investors organised by NCB Stockbrokers.

Mr Gleeson stood down as AIB chairman in July last year.