The BofI sale and leaseback eight years ago saw 29 bank branches plus a call centre in Kilkenny sell for €5 million above the then-€89m guide via CBRE.
The major portfolio was acquired by developer Joe Layden, for an initial yield of 3.9%, making him probably the biggest single owner of Irish bank branches: the previous year, Gerry Gannon paid €100m for 12 AIB branches.
Mr Layden subsequently sold an initial six of his group of 29 branches, in Kinsale, Bandon, Dunboyne, Maynooth, Donegal and Killester.
Now, 2015 investors picking up any or all of the next four offloads, of Mallow and Mitchelstown branches and Cork, and Rathmines and Drumcondra branches in Dublin, can look to returns well in excess of Mr Layden’s sub-4% yield.
They range from 6% to 6.46% at the stated guide prices via selling agent Robert Murphy of Murphy Mulhall in Dublin.
When sold in 2007, the larger BofI portfolio produced a rent roll of €4.1m on new 25-year FRI leases, with a break option in year 15.
The most valuable of the four now being disposed of is the 5,200 sq ft Mallow branch, producing €270,000 pa. It’s guided at €4m, or a 6.46 % return. A similar yield is offered at Mitchelstown, rented at €111,000 pa and guided at €1.65 million.
The bank branch at Lower Rathmines has a €1.65m guide, rented at €103, 000 and a yield of 6%. Drumcondra is guided at €1.45 million, has a passing rent of €93,000 and shows a return of 6.16%.
These four branches are all in elegant buildings, the tenant is described as exemplary, and it’s only the second time they’ve ever been offered for sale.
: Murphy Mulhall 01-6340300