AIB has announced it will sell and lease back 12 of its Dublin branches as part of a strategy aimed at freeing up capital to meet strong loan demand.
All of the buildings will be leased back to AIB and will continue to operate as branches, the bank said. Hamilton Osborne King will handle the sale of the properties.
The 12 properties, which will go on the market later this week, are expected to be valued at around €80 million in total, according to property industry sources.
The branches in question are Artane, Dundrum, Clonskeagh Road, Dún Laoghaire, Crumlin Road, 37/38 O'Connell Street, Dame Street, Ranelagh, Morehampton Road, Donnybrook, Stillorgan, Drumcondra and Tallaght.
The bank sold its headquarters in Dublin's exclusive Ballsbridge district in two tranches in 2005 and in April this year to raise €746 million. In April, it said the rent payable under the leases would be "more than offset by savings and by the benefits derived from the use of the capital".
Analysts said Thursday's announcement was about capital rather than cash flow.
"These [sales] are largely exceptional items, so they're not part of the underlying profit situation, not really relevant to this year's earnings per share," said Stuart Draper, an analyst at Dolmen Securities in Dublin.