A group of 62 Irish investors has paid €82.5 million for the former Bank of Ireland headquarters in Dublin's International Financial Services Centre.

It is by far the largest syndicated property transaction to have been completed in this State and will provide an initial yield of 6.1 per cent. Once capital allowances are availed of, the return rises to 6.9 per cent.

The decision by the syndicate to purchase the 101,000 sq ft La Touche House underlines the enhanced role being played by private investors at a time when interest rates are relatively low and there is little or no competition from the life assurance and pension funds.

The 62 members of the syndicate, most of them business and professional people, have invested €24.75 million in unit sizes of €317,000.

A small number of the investors signed up for two or three units each.

The balance of the debt funding has come from Anglo Irish Bank on a non-recourse basis, effectively meaning that the investors' risk is limited to La Touche House.

One of the attractions of the deal is that the investors can avail of almost €48 million in unclaimed capital allowances by offsetting Irish rental income against that figure over the next 16 years.

The group of investors was assembled by Warren and Partners and estate agents Insignia Richard Ellis Gunne.

Mr Pat Gunne said co-ownership of commercial property investments was likely to become more common in the future.

Traditionally, the high value of these buildings had been a significant barrier to entry for many investors and these investments were usually bought by institutions or business people with a high net worth.

La Touche House was sold by CB Hamilton Osborne King on behalf of the Bank of Ireland Group which has moved part of its IFSC operation to a new building in nearby Talbot Street.

Most of the space in La Touche House is occupied by other international groups including Zurich Bank, Dresdner Bank, XL Europe and IBM.