BUSINESSMAN Louis Fitzgerald, the owner of the largest chain of pubs in Ireland, is to purchase the freehold of the Cafe en Seine superpub on Dublins Dawson Street for slightly over €8 million. It is one of four Dublin bars in the Capital Bars group currently being operated by a receiver for AIB.
Mr Fitzgerald is unlikely to be satisfied with an investment yield of 6.75 per cent from the extensive property and in due course is expected to seek control of the business by acquiring the leasehold interests.
Cafe en Seine is one of the finest bars in the city and would be the jewel in the crown of the Fitzgerald pub chain which already includes more than 20 bars and three hotels.
Mr Fitzgerald has agreed purchase terms with Royal Liver Assurance which has owned the building for many years. It is is held on three long leases by Capital Bars at an overall rent of almost €600,000 per annum. Two of the leases run until 2022 and the third expires in 2028.
An estate agent specialising in the bar business said he did not believe Mr Fitzgerald would tie up €8 million in the property unless there were good prospects of him taking control of the business.
AIB appointed a receiver last December to four businesses within the Capital Bars group of pubs after failing to agree a settlement with publicans Liam and Des ODwyer relating to a debt of €25.7 million. Pearse Farrell of accountants FGS now acts as receiver to Cafe en Seine as well as to Howl at the Moon, Zanzibar and the George. The receivership arrangement followed the conclusion of an examinership process that had been running since last September. AIB holds a charge over leases on the pubs which are believed to be trading successfully.
Though the entertainment industry and particularly the bar business has suffered over the past two years because of the fall off in spending, the Fitzgerald pubs are understood to be doing better than most because of their broad appeal and primary locations.
They include Keogh’s of South Anne Street, the Baggot Inn on Baggot Street, Grand Central in O’Connell Street, The Quays in Temple Bar and Galway city and Poitin Stil in Rathcoole.
The group also includes the Arlington hotels at O’Connell Bridge and Lord Edward Street and the Louis Fitzgerald hotel on the Naas Road in west Dublin.
Cafe en Seine is a vast building extending to 1,544sq m (16,622sq ft) with a capacity of 1,700. It has a reputation for charging top prices for drinks and opening late at night to provide alternative entertainment to nightclubs. The premises is lavishly furnished. Cafe en Seine and Zanzibar were the first superpubs in the city. CB Richard Ellis handled the sale for Royal Liver.
