| Quarter of 2006 pub sales to be redeveloped |
Posted: February 26 2007
 The licensed premises property market has realigned over the past five years, according to Morrisseys Auctioneers in its annual report. Licensed premises which were located within major and/or growing population centres enjoyed a bright future and those that did not faced challenging times.
Interest from developers in pubs with development potential resulted in 25 per cent of the total market being sold for redevelopment opportunities which contributed significantly to the considerable increase in the average sale price of a licensed premises together with a substantial increase in the capital value of the market when compared to previous years.
According to Morrisseys, 37 licensed premises changed hands in the Dublin market last year reflecting 4.77 per cent of the total number of licensed premises there.
Activity in 2006 was up 5.75 per cent compared to activity in the market in 2005. The capital value of the market increased again considerably from €155 million in 2005 to €180.3 million in 2006. The average price of a licensed premises in 2006 was also up substantially to €4.87 million. This compares with €3.16 million and €4.43 million for 2004 and 2005 respectively. 2006 also returned a 7.7 per cent increase in activity in the 10-year average of licensed premises sold, considerably higher than the 0.02 per cent increase in activity in 2005 “re-enforcing the strong market conditions”, stated Morrisseys.
Private treaty sales continued to increase in 2006 and constituted 56 per cent of properties sold compared to 43 per cent in 2005 whilst auctions accounted for 11 per cent, down from 17 per cent in 2005. Morrisseys puts this down to the increasing number of deals being concluded by way of ‘Share Purchase’ via Private Treaty. Public Tender sales grew from nine per cent of total sales in 2005 to 19 per cent last year which emphasises the number of properties offered for sale holding a higher Alternative Use Value for redevelopment.
Post-auctions were down to 14 per cent from 31 per cent.
Sales outside Dublin in 2006 were strong for properties in well-sited towns with expanding population. Prices ranged from €0.55 million – €4 million.
The top prices last year were for properties with development potential. This trend seems set to continue.
According to Morrisseys, there is already over €35 million in sales in the pipeline for the first quarter of this year “which bodes well for the marketplace”. |
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