A private investor has bought the McDonald's drive-through restaurant on Dublin Road in Lucan, Co Dublin, for €2.26 million – a full €490,000 above the original guide price. The net initial yield will be 5.5 per cent.
Jane Dolan of Cushman & Wakefield handled the sale of the single-storey drive-through facility extending to 311sq m (3,347sq ft) which was extensively refurbished last year.
The building is let to the restaurant group on a 35-year lease from 2005 at a rent of €130,000 per annum. The lease provides for five yearly upwards only rent reviews based on the entire premises.
Rent review
The most recent rent review in 2015 “was not actioned upon and time is not of the essence”, according to the selling agent.
The restaurant is located on the Dublin Road about 800 metres outside Lucan town centre, one of Dublin’s fastest-growing commuter suburbs and just off the N4 Dublin-Galway dual carriageway.
McDonald’s has more than 80 restaurants throughout the country which recorded sales of almost €85 million in 2015.
