AIB says it has sold part of its Bankcentre site at Ballsbridge in Dublin 4 to the Serpentine Consortium for €367.75m in cash, as part of a sale and leaseback deal.

Serpentine Consortium is a syndicate of private individuals and companies assembled by AIB Private Banking and Goodbody Stockbrokers. AIB says the consortium was selected after a competitive bidding process.

The consortium has engaged Blogram Ltd, a subsidiary of AIB to develop the site, which has been valued at €1.2m.

The development will extend to a total area of 324,766 square feet. When it is finished it is intended that it will be let to a company in the AIB Group for up to 31 years .

A statement from AIB said that the initial annual rent payable by the tenant will be €16.117m a year and this amount will be subject to five year rent reviews.

AIB says the deal will make the bank a profit of about €160m over three years. The bank said it will reinvest this money into its core banking business.