The front four blocks and adjoining land are to be bought bySean Dunne and will be leased back to AIB on a 20-year lease. Thelease agreement includes a break clause exercisable by either partyafter four years and 11 months. The remaining properties, to bebought by Hibernian Life and Pensions Limited, also will be leasedback to AIB for 20 years.
The initial annual rent payable on both lots by AIB will be$14.43 million (euro 11.6 million) per annum. The rental rate maybe adjusted subsequent to rent reviews every five years.
The sale will provide AIB with a post-tax profit of $286.15million. AIB officials say they will reinvest the proceeds in itscore banking business, and that they believe the cost will be morethan offset by savings and by the benefits derived from the use ofthe freed-up capital.
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