€4m to be paid for two drive-through restaurants in D11

An Irish investor based overseas is to pay just over €4 million for two drive-through restaurants beside Charlestown Shopping Centre in Dublin 11.

The food outlets, which will give the new owner a return of 7 per cent, were developed by brothers Mick and Tom Bailey of Bovale Developments whose loans have been transferred to Nama.

Both men have been disqualified from acting as company directors for seven years.

Nama is understood to have provided funding for the food outlets as well as a new 13,935sq m (150,000sq ft) nine-screen Odeon Cinema and Leisureplex, which are expected to open for business in the spring.

These may also go for sale when completed.

The McDonald’s and KFC restaurants are located at the junction of the N2 Ashbourne road and the M50 alongside Charlestown Shopping Centre, which has been trading for over a decade.

Bovale has also built a substantial apartment development on site.

The restaurants, which attracted considerable interest among private investors because of the lot size and the strength of the covenants, are occupied under new modern long-term leases from 2012 and produce a combined rent roll of €291,400 per annum.

McDonald’s pays an annual rent of €150,000 under a 25-year lease and is allowed to trade on a 24-hour basis.

The group reported an overall turnover in Ireland of €77 million last year with a profit of €11 million from 81 fast food restaurants.

MBCC Foods, trading as KFC, also signed a 25-year lease but has a break option in year 10.

It pays a rent of €141,400 per annum.

Bannon and CBRE are handling the sales.