Bewley’s Rent Reduction | Grafton Street | Irish Times
Bewley’s Cafe is embroiled in a High Court battle over the Dublin rent valuation of its Grafton Street location. Property developer Johnny Ronan is seeking €1 million annually, but the iconic cafe contests this, aiming for €747,000, a significant difference impacting the rental dispute. Expert valuations vary,showcasing contrasting methods and perspectives on the prime restaurant area. Fergus Crosse, representing Bewley’s, used a zoning model, while David Potter argued for an ”overall” view, emphasizing the value of the back restaurant space. This commercial real estate disagreement has major implications. Stay informed about this critically important case. For in-depth coverage and breaking news on Irish business and beyond, see News Directory 3. Discover what’s next, as the High Court decides the fate of the grafton Street rent.
Bewley’s Cafe Faces High Court Battle Over Dublin Rent Valuation
Bewley’s cafe and RGRE Grafton Limited, owned by property developer Johnny Ronan, are locked in a High Court dispute over the annual rent for the cafe’s Grafton Street location in Dublin. The heart of the matter is a critically important difference in rental valuations, with Ronan’s company seeking €1 million annually, while Bewley’s Cafe contends the rent should be €747,000. An expert valuer for the coffee shop chain placed the figure even lower, at €518,000.
The disagreement stems from differing valuation methods. Bewley’s Cafe Grafton Street Ltd (BCGSL), through its legal team led by Simon Murphy of Beauchamps solicitors, initially appealed a Circuit Court decision that set the rent at more than €738,000 per year, later adjusted to €747,000. This figure,while contested,represented a 50% reduction from the €1.46 million Bewley’s had been paying. RGRE Grafton has cross-appealed, escalating the rental dispute.
Fergus Crosse, a valuer for BCGSL, argued that improvements made to the building by Bewley’s should further reduce the gross rent, leading to his €518,000 valuation. Crosse told David Whelan SC, representing BCGLS, that he used a “zoning” method, valuing floor space closest to the entrance (Zone A) highest, with subsequent zones decreasing in value. David Potter, a valuer with Savills representing RGRE Grafton, countered that an ”overall” view was more effective and that the zoning model “undervalued” the restaurant area.
Potter emphasized the importance of the restaurant space at the back of the cafe. He said that valuing the restaurant area at €24 per square foot, while a staff room in a nearby McDonald’s was valued at €60 per square foot, was a “essential misvaluation.” He added that he was valuing the property as a restaurant, aligning with Dublin City Council’s preference to maintain Bewley’s as a restaurant rather than a retail outlet, impacting the property valuation.
“Bewley’s space at the back is big money, it’s the main restaurant,” Potter said. ”It can’t be valued as if it is indeed the cheapest, worst space.”
What’s next
The case continues before Justice Sara Phelan, with the High Court tasked with resolving the dispute over the Dublin rent and determining a fair valuation for the iconic bewley’s Cafe on Grafton Street.