Bank of Ireland confirmed yesterday it is to push ahead with the sale and leaseback of as many as 35 of its larger branches to raise funds to strengthen the group's capital base and develop the business.
The decision follows an extensive review of the bank's property portfolio.
It has 254 branches in the Republic, occupying more than 93,000 sq m (1 million sq ft).
Richie Boucher, chief executive of retail financial services at the bank, said that it will enter into long-term leases of about 25 years for all the properties, with five-year rent reviews. The properties will be offered for sale in one or more lots by public tender and the bank has appointed CBRE to arrange the sales.
Marketing for the properties will commence in September.
Well-located branches are expected to sell for yields of 3 per cent or even less because of the high demand in the commercial property market.
According to the SCS/IPD index published last month, commercial property made returns of 5.4 per cent in the first three months of this year, up from 4.5 per cent in the same period last year.
