Property deal: Property developer Sean Dunne and Hibernian Life and Pensions are to acquire eight office blocks and the surrounding land to the front of AIB's Ballsbridge headquarters for €377.7 million. Siobhán Creaton, Finance Correspondent, reports.
The property has been sold in two lots with Mr Dunne's company, which purchased the Jurys and Berkeley Court hotel sites last year, owning the biggest share.
His company, Mountbrook Homes, is believed to have paid €200 million of the €377.7 million total for the front four blocks and adjoining land which is on 3.75 acres. This values the site at around the €55 million an acre paid for the Jurys site. A spokesman for Mountbrook Homes said it viewed the price as "good value". Hibernian will own the remaining blocks which will be leased to AIB over 20 years.
The property and lands acquired by Mr Dunne will be leased back to the AIB group on a 20-year lease, with a break clause exercisable by either party after four years and 11 months. Mountbrook Homes is understood to have no firm plans for the site yet but is likely to consider redeveloping the site with a mix of offices, residential, hotel and retail units.
Mr Dunne's company is preparing a planning application for the Jury's hotel side which is expected to be lodged by the end of this year. It could take at least three years for it to prepare a similar application for the AIB site.
The initial annual rent payable on both lots by AIB will be €11.6 million per annum and will be subject to adjustment in subsequent five-year rent reviews.
Last year, the Serpentine Consortium - a syndicate of wealthy people and companies assembled by AIB's private banking unit and its stockbroking subsidiary, Goodbody Stockbrokers - bought the planned new extension to the bank centre for € 367.75 million in a similar deal.
The extension acquired by the Serpentine Consortium, which is due to be completed in 2008, together with the blocks owned by Hibernian Life and Pensions are expected to be sufficiently large to accommodate AIB's staff requirements leaving Mr Dunne clear to redevelop his part of the site within the next five years.
AIB said it will realise a €230 million profit from the deal which is expected to be completed during the second quarter of 2006. The bank said it would realise a € 160 million profit from the previous sale and lease back to the Serpentine Consortium.
