Sale&LeasebackAIB's Bankcentre in Ballsbridge is available for a sale and leaseback deal in what will probably be the largest property investment on the market this year, writes Jack Fagan

Agent Jones Lang LaSalle is to launch a marketing campaign today for the sale and leaseback of the AIB headquarters in Ballsbridge, Dublin 4, which will have a value of around €275 million.

The successful bidders are likely to get a return of no more than 4 per cent on what will be the largest property investment to reach the market in Ireland this year.

Last year, the Serpentine Consortium - a syndicate of wealthy people and companies assembled by AIB's private banking unit and its stockbroking subsidiary, Goodbody Stockbrokers - bought the planned new extension to the Bankcentre for €367.75 million in a similar deal which will show a yield of 4.25 per cent.

The cynical expectation is that, just like last year's deal, this one may also remain in-house for AIB investors, though there will be no shortage of bidders from various consortia, property companies and institutions based here and in the UK.

There were more than 10 offers last year for the new extension to the Bankcentre and, with even fewer large investment opportunities available this time around and a flood of Irish money looking for a home, the competition for the old Bankcentre "should be extremely hot", according to one investment agent.

However, the buildings now going for sale are over 30 years old but, like most bank buildings, have been particularly well maintained. The leaseback commitment will probably be for around 30 years with a break option available to the bank after 23 years. These terms would be in line with last year's deal. Investors planning to pitch for the Bankcentre will be anxious to find out whether the sale includes the land at the front of the site where there may be undoubted development potential in the future.