The Bank of Ireland is poised to sell off more of its branches to investors in sale-and-leaseback deals, Irish business newspaper Sunday Business Post reported on the weekend.
The Bank of Ireland is poised to sell off more of its branches to investors in sale-and-leaseback deals, Irish business newspaper Sunday Business Post reported on the weekend.
The newspaper said the bank agreed sale and leaseback deals in October 2006 in relation to 36 branches for just under EUR 240 mln. Half of the 36 banks were bought by investor Bernard McNamara and private equity groups Quinlan Private and Friends First. While these transactions reflected yields of 2.6% and 3.7%, investors are said to be confident yields will improve following rent reviews in five years.
Allied Irish Bank (AIB), Ireland's largest banking group, is said to be considering selling of more of its branches after selling 12 branches in 2006 for EUR 100 mln. Both AIB and the Bank of Ireland have already sold their headquarter buildings in Dublin and leased them back.
Meanwhile, HSBC bank is reportedly preparing to divest itself of its Canary Wharf headquarters in a sale and leaseback deal worth EUR 1.2 bn - the largest investment deal in the UK for a single building.
