First Active is moving from its Booterstown headquarters in Dublin and will centralise its administrative, technology and head office functions in a new building in Leopardstown. The bank intends to move 400 of its staff to the new location by March 2001. First Active chairman and acting chief executive Mr John Callaghan said yesterday the initiative will deliver operational and cost efficiency to the group. Three Dublin city centre administrative outlets will also be closed and staff will be relocated to Leopardstown.

Mr Callaghan said the bank is reviewing its options in relation to whether to sell or redevelop its properties at Booterstown and the two city centre branches it owns at Grafton Street and Mount Street. First Active's Booterstown headquarters is on a 2.2-acre site and includes a 65,000 square foot office block and four houses. This site is likely to generate a lot of interest from developers and has the potential to be redeveloped for residential use. Some industry sources suggest it could be worth more than £10 million.

First Active will lease the new headquarters in Leopardstown, which is being purpose-built to meet its requirements. It has signed a 25-year lease at a rent of £18 per square foot, with five-yearly rent reviews. The letting agents are Finnegan Menton and Lisneys. Mr Callaghan stressed the relocation was not part of the group's cost-cutting initiative, which has included job losses and branch closures and is expected to yield annual cost savings of €13 million. "There are drawbacks and inefficiencies in our current locations, and the restructuring programme, which has progressed very well, gives us the opportunity to address these issues in a comprehensive manner," he stated.

First Active says it has undertaken an analysis of where staff moving to Leopardstown currently live and of their travel patterns. This established that 80 per cent lived within four miles of the new Central Park location. It intends to provide a shuttle bus service for staff from the DART and the Stillorgan Quality Bus Corridor, and will also provide 250 car parking spaces.

Branch customers who used the Booterstown branch will be accommodated in branches at Stillorgan, Donnybrook and Dun Laoghaire. First Active has run into problems in the past when it sought to expand or redevelop the Booterstown headquarters site, which is in a largely residential area. Meanwhile, the bank is continuing in its efforts to recruit a new chief executive to replace Mr John Smyth. The company has also recently been the centre of market rumours about a possible link-up with another institution. Mr Callaghan stated yesterday that the bank is not in discussions with any institution at the moment.