The sale is the latest in a series of moves McKillen Jr. has made over the past two years to dispose of his interests in hotels, hospitality properties and development sites.
The Oakmount subsidiary had received planning permission to develop 50 apartments on the Union site, including two four-storey buildings and a three-storey commercial building of 1,164sq m, plus 2,985sq m of underground car parking.
The buyer will also be able to acquire Union's beverage license as an additional option.
Ollie Lyons of JLL said that although planning permission has expired, it could “allow for a more optimised housing delivery and make the site an even more attractive proposition for developers”.
Union Cafe is located on the corner of Deerpark Road and North Avenue, across from local churches, the National School, the community centre, Deerpark itself and a street lined with shops and restaurants. It is also located next to The Pinnacle development, where Oakmount is building 100 apartments. Construction work on The Pinnacle has been halted due to contractor issues, but the first phase of these units is expected to be completed this year.
Aimed at upmarket residents, including newly-raised couples, in the mature Mount Merrion area, The Pinnacle Apartments were originally planned for sale with prices starting from €550,000. The remaining 100 apartments will be sold once the scheme is complete this autumn. Prices have yet to be announced.
Last November, Press Up Hospitality Group, the restaurant and pub division of McKillen Jr.'s group, which operated Union Cafe, closed the venue in order to demolish the building to make way for new apartments.
McKillen Jr initially launched the Union Café brand at a premises in Mount Merrion and then opened two more outlets in Sandyford and Churchtown in south Dublin, before acquiring the Elephant & Castle restaurant, renaming the latter two outlets Elephant & Castle, while keeping the Mount Merrion location as Union.
Meanwhile, JLL is pursuing the sale of another McKillen development site in Sandyford, Dublin 18, for an expected €2.75 million. McKillen Jr has applied for planning permission to build 14 three- and four-bedroom terraced houses over three floors on 0.97 acres of elevated land at the foot of the Dublin Mountains. The sale does not include the liquor licence for the landmark former Lamb Doyle, which also sits on the site.
Other group sales included the sale of a majority stake in the Dean Hotel Group to London-based Lifestyle Hospitality Capital in February, which is backed by funds advised by Elliott Investment Management, in a deal that reportedly valued the hotel chain at €355 million.
It has also been reported in recent weeks that Cheyne Capital is seeking to take control of Press Up Hospitality Group. Cheyne has been the main investor in the group for the past two years and it is thought to have debts of nearly €40 million.