REMEMBER ALL those sale and leaseback deals for bank branches done while the good times rolled? Bank of Ireland was one of the lead players in that market, selling branches and office blocks to the likes of Bernard McNamara, clients of Quinlan Private and Warren Private as well as developer Joe Layden. The bank raised more than €400 million from the process, much of which was used to borrow even more money to lend into the property market, exacerbating its losses when the whole sorry bubble burst.

The upshot is that the bank is on the hook for significant rent payments over the coming years, money it wouldn’t be paying out if it had kept control of its estate. How significant?

This year alone, its annual report shows, it’s facing rent payments of €69 million, with more than €280 million due to be paid out over the coming five years. In addition, the bank is committed to at least €416 million in rental payments after 2015.

Given the amount of money the State has ploughed into Bank of Ireland, trying to renegotiate those rents should now be a priority for the bank. It should also be looking at a company voluntary arrangement in Britain and Northern Ireland, a receivership-style process which should allow it reduce any rent it pays to landlords there.

The banks’ own portfolio didn’t fare too well. Its land and buildings were worth €177 million at the end of 2010, according to its annual report, down from €272 million at the start of April 2009.