B of I may offload four offices in city centre

THE Bank of Ireland is reviewing its use of four office blocks in Dublin as part of an ongoing rationalisation plan. Two of the blocks involved are rented and the two others are owned by the bank.

A bank spokesman said it was too early to indicate if its use of the buildings would change. B of I was continuously looking at the possibility of reducing space because of the costs involved.

The bank has asked a number of Dublin estate agencies for recommendations as to how the buildings might be offloaded.

The largest space, 55,000 square feet, is occupied by the Lifetime Assurance Company at the Earlsfort Centre, where it is rented at over £800,000 per annum, the equivalent of £15.25 per square foot.

Although the lease has more than 20 years to run, it should be possible to assign it because of the shortage of high-quality office accommodation.

The State-run National Medicines Board recently paid key money of over £150,000 to take over almost 23,000 square feet of space from ACT Kindle at the Earlsfort Centre.

However, it is uncertain if the bank could secure a premium because there is a limited number of tenants seeking over 50,000 square feet.

The other office block under review by the bank is at Pembroke Road, where 12,000 square feet is rented at around £120,000 per annum.

The bank is also reviewing the use of its own 25,000-square-foot block occupied by the Irish Civil Service Building Society at Westmoreland Street and D'Olier Street. The bank also owns a 26,000-square-foot building at Burlington Road, which may be sold as part of the cutbacks.

The bank is understood to be following the example of Irish Life, which released about 70,000 square feet in its head office by reorganising the layout and introducing new furniture systems. The bank has around 200,000 square feet of space in its headquarters building in Baggot Street, which dates from the 1970s.

If a decision is made to withdraw from some or all of the four buildings, staff are likely to be transferred to Baggot Street.

A bank spokesman said: "We are at a very early stage in our research . . . we are just getting into the process."

Meanwhile, AIB is planning to disengage from rented space in Blackrock. The bank is paying a rent of £12.50 per square foot for 20,000 square feet at Trident House.

The lease provides for a break clause in the fifth year and with 12 months to run, the Sherry FitzGerald agency is seeking to assign the lease.