Landmark pub sold for €16m

A landmark Dublin pub is likely to be redeveloped after being sold for €16 million.

The sale of the Addison Lodge premises in Glasnevin puts the seal on a good year for sales in the sector, driven by the potential for development in built-up areas.

The sale - for €3 million above the €13 million guide price to publican Kevin Fitzsimons and developer Joe Kenny - indicates that developer demand for larger pub sites in the capital shows no signs of slowing.

The pub, opposite the Botanic Gardens, and an adjoining detached house sit on a combined site of 1.064 acres.

"The price reflects the underlying property value. Apart from the pub itself, the site has a massive car park and private residence attached," said Rory Browne of commercial property auctioneers Morrissey's, which handled the sale.

The site offers significant development opportunities to the new owners, he said.

Mr Fitzsimons already owns the nearby Botanic House, which is understood to have cost around €3 million six years ago. That pub has been extensively renovated.

Mr Kenny's Woodgreen Builders has been involved in a number of construction projects on Dublin's northside, including the conversion of the old mills at Cross Guns Bridge in Glasnevin to apartments and the Premier Square development in Finglas.

The company is also working on a 20,000sq m (65,616sq ft) mixed-use development in Dunshaughlin in Co Meath. Other developments include Sallins Bridge in Kildare and Inse Bay in Laytown, Co Meath.

A sister company, Silver Stream Healthcare, owns six nursing homes and care centres.

The Addison Lodge had been run by the Freyne family for 53 years and had a turnover in the 12 months to last January of €1.5 million from drink and food sales, as well as from 12 guest rooms.

Mr Morrissey said the total value of pubs in recent times has been buoyed by the growing interest from developers in large suburban pubs, which have the potential to be redeveloped as mixed pub/residential projects. He said he expects this trend to continue in 2007.

Figures to the beginning of November last year showed that 28 Dublin pubs were sold with a total capital value of around €130.74 million, giving an average sale price at around €4.67 million. Other northside pubs in prime locations such as Dollymount House, the Royal Oak and the Swiss Cottage have also commanded premium prices in recent times.

In a separate deal , the Old Forge in Main Street, Wicklow town, was sold by private treaty for more than €3.5 million by Morrissey's. The pub was sold by John Kavanagh who is retiring and was bought by Dublin publican Tony Birmingham.