AIB Seeking Eur 80 Million in Sale Leaseback 12 Dublin Bank Branches

Eircom.net - August 25, 2006

AIB is to sell and leaseback 12 of its Dublin branches in a deal that should net the Republic's biggest bank around €80 million. It intends to use the funds to meet strong demand for lending from its clients, it said. The move follows the sale and leaseback of AIB's Ballsbridge headquarters - in two lots, in 2005 and last April - raising €746 million.

Twelve of AIB's Dublin branches will be advertised for sale from today by its advisers, Hamilton Osborne King. The branches being disposed of are in Artane, Clonskeagh Road, Crumlin Road, Dame Street, Morehampton Road in Donnybrook, Drumcondra, Dundrum, Dun Laoghaire, 37/38 O'Connell Street, Ranelagh, Stillorgan and Tallaght.

All of the buildings will be leased back to AIB for 20 years and will continue to operate as AIB branches. The properties produce rent rolls of between €155,000 and €590,000 with a total income of €3.28 million.

Yesterday, the bank said: "AIB's sale and leaseback of a number of its premises, including its head office building in Ballsbridge, enables the bank to further grow its business by freeing up capital to fuel lending growth to satisfy increasing customer demand in a continuing strong economy." The closing date for offers is September 21st and the bank has also indicated that it may sell more of its 275 branches as part of its efforts to generate capital for lending. Sphere: Related Content