High-traffic McDonald’s building on Jervis Street sells for €17m
Fast-food franchise pays €733,000 rent for premises, which sold below guide price
The McDonald’s on Jervis Street, Dublin: The building has been bought by State Street Global Investors for about €17m. Photograph: Gareth Byrne Photography
State Street Global Advisers has acquired a key building at the junction of Dublin’s Mary and Jervis streets, paying in the region of €17 million for the three-storey McDonald’s fast-food restaurant.
Agent CBRE had been guiding €18.5 million for the high-profile investment.
McDonald’s pays a rent of €733,000 per annum for its premises, which is held on a 35-year lease from December 1998 – leaving more than 16 years to run with no break options.
The fast-food company has 516sq m (5,553sq ft) of retail space at basement and ground levels. There are also two floors of offices overhead extending to 529sq m (5,694sq ft). The office suite is fitted out to a high standard and can be accessed via a separate entrance along Jervis Street.
A considerable number of investment funds are still interested in retail outlets on Henry Street. There have been seven property sales since 2013, accounting for about €120 million.
State Street is understood to have been the under-bidder last April for the Evans women’s fashion outlet at 42-43 Henry Street, which was sold to international property manager AEW for about €20.5 million. That investment is showing a yield of 4.2 per cent.