Fast food chain HQ sells for €3.3m

Most of the space is let to McDonald’s on a 25-year lease from the end of 1996

A private investor has paid €3.3 million – €1 million above the guide price – for the Irish head office of McDonald’s Restaurants in Block 7 of Richview Office Park at Clonskeagh, Dublin 14. The investment property is rented at €256,373, giving the new owner a return of 7.32 per cent.

The three-storey block at the rear of the park extends to 800sq m (8,611sq ft) and has 24 on-site car-parking spaces.

Most of the ground floor is vacant, giving the new owner an opportunity to increase the rental income. Internally the block has been divided into two own-door office suites.

Most of the space is let to McDonald’s on a 25-year lease from the end of 1996 and the next upwards-only rent review is due in 2016. There are no break options remaining on the lease.

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McDonald’s first opened in Ireland in 1977 and now has 84 restaurants throughout the country either owning them directly or operating on a franchise basis.

It has a staff of around 4,000. The most recently published accounts show that the company posted a net profit of €11 million off an annual turnover of €77 million.

Nigel Kingston of Douglas Newman Good advised the purchaser while Ross Fogarty of Knight Frank acted for the vendor.

Jack Fagan

Jack Fagan

Jack Fagan is the former commercial-property editor of The Irish Times