This compares to 38 pubs sold in the capital in 2014 worth €44 million, according to CBRE which predicted, “We’re expecting to see a similar volume of activity occurring in the Dublin market over the next 12 months and are encouraged by the fact that there were 17 Dublin pub properties totalling more than €25 million where sales had been agreed at the end of last year, which will boost 2016 figures once these sales are completed”.
According to the auctioneers’ annual report and outlook for 2016, pub turnovers are now stabilising in line with improved economic activity which, in turn, is boosting the value of pub properties.
However CBRE warned that, “a stabilisation of pricing is the best that can be expected for pubs in the city’s suburbs until such time as trade improves to the same extent as it has already done in the city centre over the last 12-month period”.
The report continues, “Demand for Dublin pubs is now emanating from a new profile of buyer, predominantly experienced, local operators that are securing funding from other sources, primarily from overseas backers”.
It points out that another emerging trend is for sales to be agreed via a deferred purchase/leasing arrangement. This is put in place before committing to completing sales at a later stage. CBRE therefore hopes to see more consensual pub sales in 2016 “as opposed to the distressed sales that have been dominant over the last number of years”.
More than 60 hotel properties totalling more than €710 million changed hands in Ireland last year.
“This is a remarkable outcome for the year considering that these figures do not include the loans associated with over 40 other hotel properties which also changed hands as part of loan portfolio sales last year,” notes CBRE.