AIB to sell a further seven bank branches

Allied Irish Banks is stepping up its sale-and-leaseback programme to raise capital from its large real estate portfolio. The bank has instructed CB Richard Ellis to market seven 'prominent branches' in the strategic business locations around the Irish Republic.

The property adviser said the sales were expected to generate just under EUR 20 mln.

CBRE said that the properties would be secured by long leases to Allied Irish Banks plc offering investors the opportunity to acquire high quality buildings with the security of an excellent covenant. The branches are located in Swords, Navan, Dundalk, Monaghan, Kells, Castleblaney and Maynooth. The deals are expected to yield 6.5-7%.

The bank recently sold three branches in Dublin.