Activity within the Dublin licensed property market witnessed an unexpected resurgence in both activity levels and capital value growth in 2024, after a subdued level of activity during 2023.
It will be remembered as the “year of the off-market deal”, as more than 40 per cent of all pub deals were brokered in behind-the-scenes negotiations and changed hands quietly.
A total of 15 Dublin licensed premises have changed hands so far this year with a capital value of €53.3 million, equating to an average price of €3.6 million. There are a further eight pubs at the sale-agreed/sold-awaiting-closing stage, with a capital value of almost €29 million. By comparison, last year 20 pubs were sold, with a capital value of €42.4 million, and an average price of €2.1 million.
The first of the off-market deals in 2024 was the sale of The Greedy Eagle, Glasthule, Co Dublin which was sold by the Loyola Group for about €4 million. The property was acquired by Donegal businessperson Paddy Doherty, a new investor in the licensed trade.
Another off-market deal was the sale of the popular McSorley’s pub in Ranelagh, which changed hands in July for about €5.5 million. The property was acquired by the Noel Anderson led Grand Slam Bars group, whose other shareholders include former rugby greats Jamie Heaslip, Rob Kearney, Sean O’Brien and the recently retired Dave Kearney. The other Grand Slam Bars include The Bridge 1859, Lemon & Duke, Little Lemon and The Blackrock.
The famous Cassidy’s on Camden Street was acquired from Fran Ryder in an off-market deal by a consortium led by Jason Molloy, who, prior to that, had privately sold The Bottle Tower in Churchtown. This property was acquired by Dave Clarke, who also owns The Cock and Bull in Coolock and The Black Wolf in Blanchardstown, coincidentally both of which he also acquired from Jason Molloy.
Institutional investors reactivated their interest in acquiring pub assets this year, with the acquisition of two prominent city centre licensed premises. Foley’s on Merrion Row was acquired by private equity firm Emerald Investment for an undisclosed figure, while Attestor Capital acquired Devitt’s on Camden Street in a sale and leaseback deal for a price rumoured to be about €15 million. This was the biggest sale of the year.
Of the McKillen pubs, The Lucky Duck on Aungier Street sold for about €1.85 million while Union Café, Mount Merrion, a redevelopment site, sold to Dunnes Stores for about €7 million. It is understood Ashton’s in Clonskeagh is sale agreed at a price of about €3.25 million, while buyers are still being sought for Thomas Roddy Mahers on Baggot Street, and The Foxhunter in Lucan, Co Dublin. Guide prices for both these properties were reduced.
The buyer profile in 2024 has been a mix of traditional publicans and new investors along with the return of the institutional investor. The long-term view of these buyers is that, while there are challenges in the immediate term, the long-term viability of the sector remains positive. As a result, there is an underlying interest for pub properties, although crucially they must be in the right location with the right business potential and offer a long-term return on investment.
John Ryan is head of the licensed and hospitality division at BDM Property
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