AIB Private Banking Adds to Commercial Property Portfolio

Jason Corcoran

21 September 2007

AIB Private Banking and its partners have raised €22.4 million ($31.5 million) from its clients for a new office building in south Dublin. The bank is adding borrowings of €47.4 million to the €22.4 million raised to complete the Sandyford Industrial Estate, which will cover 178,000 sq ft. There are 67 investors involved in the project, each investing at least €200,000. The building is located opposite the Microsoft building and 500 metres from the Sandyford tram station. According to an AIB memorandum, the bank expects to earn €4.7 million in fees and interest from the project, while €3.3 million will paid in professional fees. The bank expects investors to be paid a return of up to 60 per cent after 30 months. Planning permission has been secured and work has already started on the building. Construction costs are expected to be €26 million. After-tax profits on the first €15 million earned from the project will be split 60:40 between the investors and the developers, 40:60 on the next €5 million and 25:75 thereafter.