26th Apr 2006 07:03
Allied Irish Banks PLC26 April 2006 FOR IMMEDIATE RELEASE 26 APRIL, 2006 Allied Irish Banks, p.l.c. Existing Bankcentre Property (excluding New Bankcentre Development) Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) today announces that is hasentered into certain transactions in relation to its Existing Bankcentreproperty (excluding the New Bankcentre Development) at Ballsbridge, Dublin 4. The property has been sold in two lots, to Hibernian Life and Pensions Limitedand to Sean Dunne. These purchasers were selected following an open markettender process. The total sum to be paid for the purchase of the properties is €377.7 million incash. The Existing Bankcentre comprises of eight adjoining office blocks. The frontfour Blocks and adjoining land are to be bought by Sean Dunne and will be leasedback to the AIB Group on a 20-year lease, with a break clause exercisable byeither party after four years and eleven months. The remaining property to bebought by Hibernian Life and Pensions Limited, will be leased to the AIB Groupfor a period of 20 years. The initial annual rent payable on both lots by thetenant will be €11.6 million per annum and will be subject to adjustment insubsequent five year rent reviews. It is anticipated that the cost will be morethan offset by savings and by the benefits derived from the use of the capital. The capital benefit (i.e. the profit after taxation) to AIB generated from thesetransactions is in the region of €230 million. AIB will reinvest the capitalfrom the transactions in its core banking business and the transactions areexpected to complete during the second quarter of 2006. -ENDS- For further information please contact:Alan Kelly Ronan SheridanGeneral Manager, Group Finance Group Press OfficerAIB Group AIB GroupBankcentre BankcentreBallsbridge BallsbridgeDublin 4 Dublin 4Tel: +353-1-6600311 ext. 12162 Tel: +353-1-6600311 ext. 14651 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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