Bank of Ireland on Brink of E700 Million Sale-Leaseback?

The Irish Times published a story on August 12 that speculated that the Bank of Ireland is on the brink of disposing of its British property holdings in a E700 million sale-leaseback. The rumor has been discounted by the bank. It said it has embarked on a routine review of its British portfolio, but has yet to settle on a concrete strategy.

The bank sold 60 British branches for around E35 million via an auction in May and leased them back for 15 years. A bank spokesman said it has appointed property services firm Nelson Bakewell to investigate options for the portfolio but stressed reviews of this nature were a regular undertaking and should not be regarded as precursor to a round of sell-offs. The bank has 200 outlets in the UK, including 131 Bristol & West branches.

British newspaper reports quoted sources at the bank suggesting it would sell and lease back all UK properties to one outsourcing company, which would then supply all the facilities' management services as part of a 30-year lease-back deal. Sphere: Related Content