The Smith family has raised €50m (£35m) from the sale of its Ashleaf Shopping Centre and Submarine pub in the Dublin suburb of Crumlin.
The shopping centre, which generates €1.96m (£1.37m) pa, accounts for €38m (£26.6m) of the overall sale price, reflecting a yield of 4.7%.
The Smiths have agreed a two-year sale and lease back on the Submarine pub, which values the pub at €12m (£8.4m).
Taken together, the rent and sale of the pub and shopping centre suggests a combined yield of 4%.
This is yet another indication of the strength of the Dublin pub property market, despite falling sales of beer in pubs.
One brewer, Beamish, today announced a freeze on its beer prices in response to falling sales which are partly attributed to the high drink prices as well as the smoking ban and the increased consumer spend on mortgages.
The Smiths had put the pub up for auction last year at an asking price of €13m but was withdrawn when the highest bid reached only €8m.
Business consultant Paschal Taggart put together the deal for two private investors, who purchased both properties together.
Anchored by fashion and grocery chain Dunnes Stores, Ashleaf’s other tenants include McDonalds, Carphone Warehouse, Budget Travel, Unicare Pharmacy and Health Matters.
References: EGi News 25/05/05
