Another Bank of Ireland branch has come to the market, this time in Drogheda, Co Louth. The building, in the heart of Drogheda town, is let to the bank until 2031 and is seeking €3.9 million.
The sale of the branch comes as the bank readies a portfolio sale of some 82 closed branches across the State.
The building at 14 St Laurence Street extends to about 645sq m (6,943sq ft) and is being brought to market by way of private treaty by CBRE. The property benefits from an excellent location, covenant and lease term at a sustainable rental level, which is insulated by upward only review.
The building is fully let to Bank of Ireland on a 25-year full repairing and insurance lease, with no break option, from December 2006. It is the bank’s only branch in Drogheda, supporting a wide base of commercial and personal customers, and is a key branch in its nationwide network. Bank of Ireland shut its nearby branch in Dunleer in early October.
The guide price of €3.9 million reflects a net initial yield of 7.22 per cent, and a capital value per square foot of €562.
Michelle Farrell, investment properties surveyor with CBRE Ireland, said: "We expect strong interest in this sale as the market is becoming more active. Properties with the characteristics of 14 St Laurence Street are rare to come to the market at this lot size, in an excellent location and coupled with income security."
The building is situated on the northern side of the street in the heart of Drogheda and benefits from excellent frontage of 14m to one of Drogheda’s busiest shopping streets.
Drogheda is the largest town in Ireland and is situated in the rapidly developing northeastern corridor between Dublin and Belfast, which has experienced unprecedented development over recent years. The region is recognised as a centre of high economic growth in Ireland, driving its future potential.
Bank branch sales
The past few months have seen a sharp uptick in the number of branch properties coming to the market, many of which are rented by Bank of Ireland.
Last week, the bank closed more than 100 branches across the island of Ireland, including in Cobh, Co Cork and Celbridge, Co Kildare. Of these branches, the bank said it intends to sell off the 82 properties it continues to hold, and has appointed Sherry FitzGerald to manage the sales process. This process will commence in the first quarter of 2022.
Meanwhile a number of branches, either currently or formerly let by the bank, have come to the market. In Cork, the Munster headquarters of the bank at 32 South Mall is being offered for sale with a guide price of €13.5 million, offering a yield of 5.82 per cent, while in Ballina, Co Mayo, the Layden Group is quoting €3.6 million for a branch currently let to the bank, and €1.1 million for a former branch in Whitehall, Dublin 9.
Many of the branches have long-term leases with the bank, but there is an element of uncertainty over the future of branch banking in Ireland, given the move to digital.