AIB group is to sell its existing bankcentre property in Ballsbridge for €377.7m cash, in a sale and leaseback deal.
The Dublin 4 property has been sold in two lots to property developer Sean Dunne and Hibernian Life and Pensions and will be leased back to AIB over twenty years.
AIB said the initial rent per annum would be €11.6m, subject to five year reviews. AIB said it expected the cost to be more than offset by savings and by the benefits derived from the use of the capital.
AIB said that the purchasers were selected following an open market tender process.AIB expect the profit after tax of this transaction to be around €230m.
Last year in July AIB sold part of its Bankcentre site at Ballsbridge to the Serpentine Consortium for €367.75m in cash, as part of a sale and leaseback deal.
Meanwhile, AIB chairman Dermot Gleeson has told shareholders that last year's strong momentum had continued into 2006. He reiterated the bank's target of low double-digit percentage growth in earnings per share. He said AIB was enjoying 'excellent' loan growth, but anticipated rises in interest rates over the next year.
AIB shares closed up six cent at €18.95 in Dublin.
