AIB Completes €19 Million Sale Leaseback of Seven Bank Branches

Irish Independent - November 25, 2009

AIB has sold seven branches across north Leinster for a combined €19m in seven separate deals. The total proceeds are close to the €20m target which agents CB Richard Ellis had been seeking when they launched them in June.

The most recent of the branches to sell is that in Monaghan which achieved in excess of €2.5m and close to the quoted price. With a rent of €200,000, it is generating a yield of 7pc. This is slightly higher than the average yield achieved across the seven branches of 6.9pc.

The seven branches are located in Swords, Navan, Dundalk, Monaghan, Kells, Castleblaney and Maynooth.

AIB is committed to a 20 year lease on each branch with a five year break clause and upward only rent reviews every five years. The purchasers of the Navan branch will achieve the highest of the rents €335,000. The purchasers are all investors rather than developers. Two of the purchasers are expected to farm out a share of the investments in two of the branches. Sphere: Related Content