Speculation that Bank of Ireland is on the brink of disposing of its British property holdings in a €700 million sale-and-lease-back agreement have been discounted by the bank.

It said it has embarked on a routine review of its British portfolio, but has yet to settle on a concrete strategy.

The bank, which has already struck sale-and-lease-back agreements for some UK interests this year, said it has appointed property services firm Nelson Bakewell to investigate options for the portfolio.

But a spokesman stressed reviews of this nature were a regular undertaking and should not be regarded as precursor to a round of sell-offs.

He said: "This is a routine survey of our UK operations. Some properties may well be sold and leased back but it's just to early to say. Nothing at all has been decided yet."

British newspaper reports quoted sources at the bank suggesting it would sell and lease back all UK properties to one outsourcing company, which would then supply all the facilities' management services as part of a 30-year lease-back deal.

Such claims are without foundation, the spokesman said.

The bank sold 60 British branches for around €35 million via an auction in May and leased them back for 15 years. The bank has 200 outlets in the UK, including 131 Bristol & West branches.

Analysts said a sale and lease back of the British portfolio would not significantly affect the bank's share price.

Mr Eamonn Hughes of ABN Amro said: "We expect minimal impact on share price, though the move could see some capital gains from the initial disposal process."

Meanwhile, talks between Bank of Ireland and the Irish Bank Officials Association over plans to outsource computer staff are continuing, with the Labour Relations Commission chairman, Mr Kevin Mulvey, acting as mediator.