29th Jul 2005 09:49
Allied Irish Banks PLC29 July 2005 FOR IMMEDIATE DELIVERY 29 JULY 2005 Allied Irish Banks, p.l.c. New Bankcentre Development Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) today announces that it hascompleted certain transactions in relation to part of its Bankcentre site (thesite) at Ballsbridge, Dublin 4. The site has been sold to the Serpentine Consortium, a syndicate of privateindividuals and companies assembled by AIB Private Banking and GoodbodyStockbrokers. The Serpentine Consortium was selected following an open marketcompetitive bidding process. Separately the Serpentine Consortium has engaged Blogram Limited, a subsidiaryof AIB, to develop the site. The total sum to be paid by the Serpentine Consortium for the purchase andsubsequent development of the site is €367.75 million in cash. The book value ofthe site is €1.2 million. The development will extend to a total area of 324,766 square feet. Uponcompletion, it is intended that the development will be let to a company in theAIB Group for a period of up to 31 years under a lease with a break clause,exercisable by the tenant after 23 years. The initial annual rent payable by thetenant will be €16.117 million per annum and will be subject to adjustment insubsequent five year rent reviews. It is anticipated that this cost will be morethan offset by savings on rent and other costs elsewhere. The capital benefit (i.e. the profit after taxation) to AIB generated from thetransactions is in the region of €160 million. This benefit will be derived over3 years, beginning in 2005. AIB will reinvest the proceeds of the transactionsin its core banking business. -ENDS- For further information please contact:Alan Kelly Catherine BurkeHead of Group Investor Relations Head of Corporate RelationsAIB Group AIB GroupBankcentre BankcentreBallsbridge BallsbridgeDublin 4 Dublin 4Tel: +353-1-6600311 ext. 12162 Tel: +353-1-6600311 ext. 13894 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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