DUBLIN, Nov 11 (Reuters) - Allied Irish Banks is selling one of its flagship central Dublin branches under a sale-and-leaseback plan to raise cash.
The bank gave no details but the Irish Times said the branch in the Grafton Street shopping district was the bank's most valuable and could fetch upto 30 million euros.
The bank said it had already sold and leased back 50 of its 182 branches and had a similar programme for its Northern Irish subsidiary First Trust Bank.
Allied Irish is expected to transfer 24 billion euros of loans to the government National Asset Management Agency (NAMA) or so-called 'bad bank.'
NAMA will lead to writedowns and need for additional capital at Irish banks, and Allied is aiming to raise upto 2 billion euros from the equity market, strategic investors and asset disposals, with government help also an option.
Allied, in which the government already holds an indirect 25-percent stake after a 3.5 billion euro bailout, is expected by analysts to consider its minority stake in M&T Bank Corp as the prime divestment candidate.
'AIB had previously tagged upwards of 400 million euros in assets for sale during the early part of the summer, aside from the stake in M&T group,' analysts at brokerage Bloxham said.
'The Grafton street ... branch also represents a key valuation site for one of Dublin's most important shopping streets, a prime and top tier retail location,' Bloxham said in a note.
Any signs of renewed activity in the property market will have an impact on Irish banks' fate as NAMA this year starts valuing commercial property assets with a combined book value of 77 billion euros to be transferred from the banks.
The final valuations of the assets by NAMA will determine how much extra capital Allied Irish and rivals such as Bank of Ireland will need.
In a sign of renewed investor interest in Irish real estate, Bloxham said that Germany's DekaBank had recently purchased a Tommy Hilfiger store on the opposite side of Grafton street for 25 million euros.
(Reporting by Andras Gergely; Editing by David Cowell) Keywords: ALLIEDIRISHBANKS/BRANCHES (andras.gergely@reuters.com; +35315001529; Reuters Messaging: andras.gergely.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The bank gave no details but the Irish Times said the branch in the Grafton Street shopping district was the bank's most valuable and could fetch upto 30 million euros.
The bank said it had already sold and leased back 50 of its 182 branches and had a similar programme for its Northern Irish subsidiary First Trust Bank.
Allied Irish is expected to transfer 24 billion euros of loans to the government National Asset Management Agency (NAMA) or so-called 'bad bank.'
NAMA will lead to writedowns and need for additional capital at Irish banks, and Allied is aiming to raise upto 2 billion euros from the equity market, strategic investors and asset disposals, with government help also an option.
Allied, in which the government already holds an indirect 25-percent stake after a 3.5 billion euro bailout, is expected by analysts to consider its minority stake in M&T Bank Corp as the prime divestment candidate.
'AIB had previously tagged upwards of 400 million euros in assets for sale during the early part of the summer, aside from the stake in M&T group,' analysts at brokerage Bloxham said.
'The Grafton street ... branch also represents a key valuation site for one of Dublin's most important shopping streets, a prime and top tier retail location,' Bloxham said in a note.
Any signs of renewed activity in the property market will have an impact on Irish banks' fate as NAMA this year starts valuing commercial property assets with a combined book value of 77 billion euros to be transferred from the banks.
The final valuations of the assets by NAMA will determine how much extra capital Allied Irish and rivals such as Bank of Ireland will need.
In a sign of renewed investor interest in Irish real estate, Bloxham said that Germany's DekaBank had recently purchased a Tommy Hilfiger store on the opposite side of Grafton street for 25 million euros.
(Reporting by Andras Gergely; Editing by David Cowell) Keywords: ALLIEDIRISHBANKS/BRANCHES (andras.gergely@reuters.com; +35315001529; Reuters Messaging: andras.gergely.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.