ACC BANK is to sell 10 of its branches and find replacement tenants for nine other leased premises as part of the continuing rundown of its retail banking operation.
Rabobank, which controls ACC Bank, plans to retain only nine branches in “strategically important locations” – Dublin, Cork, Drogheda, Galway, Kilkenny, Limerick, Mullingar, Sligo and Waterford. It will also continue to operate the savings and investment online bank RaboDirect.
Dublin estate agent HWBC has valued the the 10 buildings for sale at around €7 million but it is thought likely that reverse premiums will have to be paid to offload some of the nine leasehold premises.
The most valuable building going on the market is at William Street in Tullamore: it is expected to have a guide price of around €925,000. The ACC branch at Main Street in Wexford is likely to fetch around €850,000 while the branch at Market Square in Navan could make around €800,000. It is located next to the offices and former printing works of The Meath Chronicle which failed to sell last year.
In the west of Ireland, the ACC branch at Pearse Street in Ballina is expected to sell for around €750,000 while another building in Tuam could make €650,000. The branch at Mill Street in Monaghan has a similar valuation while the building in Tralee could possibly sell for up to €700,000.
The three remaining branches at Pearse Street in Nenagh, Main Street in Roscommon and Mary Street in Dungarvan have guide prices of €600,000, €500,000 and €400,000, respectively.
Sharon Walsh of HWBC says that the 10 branches are priced substantially below the peak levels of 2007.
Because of the drop in values, owner-occupiers now had an opportunity to acquire affordable buildings – the mortgages on them would be equal or less than the rent payable on leased premises.
All 10 branches are being offered for sale by private treaty in conjunction with local estate agents. Some of the buildings will be sold with vacant possession while others are partially rented.
An example is Tullamore, where the Legal Aid Board is renting part of the premises under a 20-year lease at €30,000 per annum.
Eoin Feeney of HWBC says that like most banks, the ACC branches are all well-maintained, substantial and imposing buildings occupying prime locations in the various towns.
The properties had the added advantage of being in the class two retail planning category, which would allow them to be occupied by other financial institutions or bookmakers without the necessity to seek a change of planning.
There were indications that an increasing number of local authorities were now banning these uses on high streets around the country, he said.
HWBC has also been engaged to dispose of the leases of nine provincial buildings which are rented at between €35,000 and €165,000.
The premises at The Square in Tallaght, Kellyville Centre in Portlaoise and O’Connell Street in Limerick are the pick of the bunch.
The other branches are at the Rossview Business Park in Letterkenny; Market Square in Castlebar; N6 Centre at the Kilmartin Roundabout in Athlone; Gurtnafleur Business Park in Clonmel; South Mall in Cork and The Square in Newcastle West, Co Limerick.
Earlier this year HWBC sold five other ACC branches including one at South Mall in Cork which made €1.65 million at auction. Sales of three further branches are expected to be completed early next year while the ACC building in Naas is coming back on the market at €625,000 – a long way short of the original guide price of €900,000.
