Three provincial bank branches leased to AIB are to be offered for sale from today at attractive yields.
The buildings in Thurles, Co Tipperary, Clonakillty, Co Cork and Kilrush, Co Clare are all let under 20-year leases from 2008 with break options in nine years' time.
Joint agents GVA Dónal Ó Búachalla in Dublin and Irish & European in Cork are to sell the portfolio either in a single lot or on an individual property basis.
All three bank branches have been refurbished by AIB in the past year and, according to the agents, they are all of “strategic importance within the overall branch network”.
The agents say they are expecting overseas as well as local interest in the investments because of the strong demand for the lot sizes with good covenants locked in to long leases.
Guide prices
The largest of the branches on Liberty Square in Thurles extends to 1,028sq m (11,063sq ft) and is currently producing a rent of €215,000 per annum.
The guide price in this case, €2.4 million, will show an initial yield of 8.58 per cent.
The next guide price is half that figure (€1.2million) for the Clonakilty building which extends to 523sq m (5,629sq ft) and attracts a rent of €103,000 per annum. If the asking price is achieved, the investment will show a return of 8.22 per cent.
The agents are quoting €875,000 for the Kilrush bank branch which has a floor area of 523sq m (5,629sq ft). The current rent of €77,500 will provide an initial yield of 8.48 per cent.
