BANK OF Scotland (Ireland) is launching a marketing campaign today to dispose of the leases on 43 Halifax branches throughout the Republic.
A freehold bank branch in Swords, north Dublin, is also being offered for sale at €750,000 through agent CB Richard Ellis.
The bank is to close its branch network over the next month with the loss of 750 jobs, forcing more than 50,000 credit card and current account customers to move their business. The decision to withdraw from the Irish retail banking market followed a review which found that Halifax was too small to survive as a result of the financial crisis and the recession.
Halifax opened its branches in 2006 and 2007 after buying the ESB’s network of stores for €120 million. Many of the leases have 10 to 12 years to run while others have around 20 years. The bank will have to pay reverse premiums in many cases to offload the leases. About 25 of the branches are in Leinster while the remainder are spread around the rest of the country.
Cormac Kennedy of CB Richard Ellis, who is handling the disposal of the branch network, said yesterday that he expected strong interest from multiple retailers given the excellent locations involved and the extensive fit-outs.
Though the planning permissions on most of the buildings restricts use to banking services, bookmakers and financial institutions, Bank of Scotland (Ireland) is also likely to agree to an assignment of leases subject to a change of planning permission.
Most interest is likely to centre on branches at College Green, Dublin 2, where the annual rent is €175,370; Edward Street in Newbridge (rent €92,100); The Quay in Waterford (rent €110,000); High Street, Ennis (rent €115,000); Northside shopping centre, Dublin 17 (rent €91,650); Gladstone Street, Clonmel (rent €140,000); and Tower Road, Clondalkin (rent €39,000).
Other interesting branches are at The Square in Tallaght (rent €120,000); Central Plaza, Tralee (rent €116,325); Main Street, Naas (rent €110,000); Nutgrove shopping centre, Rathfarnham (rent €155,000); Grattan Street, Sligo (rent €180,000).
The lowest rent of €39,000 is at Tower Road in Clondalkin, Dublin 22.
