Bank of Ireland Private Banking purchases first property in Sweden for €125m

Bank of Ireland Private Banking today (2 December 2005) announced that it has agreed to buy Stuten 12, a multi let office and retail building situated in Stockholm Central Business District for SEK1,185,000,000 (equivalent €125m). The property comprises c. 15,000 sq. m. of office and retail space in three distinct but connected buildings. The majority of the property was completely rebuilt over the last three years and is one of very few properties in Stockholm CBD offering good size modern floor plates with a very high building specification.

81% of the rent comes from 12 office tenants, with the international law firm Linklaters accounting for more than 50% of this income. Office leases vary in length from three to seven years.

The retail space, accounting for 19% of the income, is let to seven tenants, with lease lengths varying from five to nine years. The property was purchased at an estimated initial yield of 4.8% from Swedish plc Fabege.

Commenting on the acquisition Peter Collins, Director, Bank of Ireland Private Banking, said, "In our review of global property markets issued earlier this year, we highlighted Scandinavia as a market we expect to achieve above average rental growth over the next few years. This property gives investors an opportunity to access an investment in one of the better global economies, in a city where the balance of supply and demand for Grade A buildings indicates potential for strong rental growth over the next few years."

He went on to say, "The Stuten 12 property is exceptional in providing top quality modern space in Stockholm CBD. With a number of tenants on a variety of lease lengths it offers, not only a good level of security of income but also, the opportunity to manage up the rent level in the building as tenants look to renew leases in the expected upward rental cycle. This transaction is one of the first of such scale by Irish investors in the Scandinavian market.

We are delighted to have secured this transaction off market and believe it will prove to be an excellent long-term investment for our clients."

The transaction is expected to complete in February of 2006.

Please Note: A photograph of the building is available on request.

ENDS

Anne Mathews
Tel. 01-6043836
www.boi.ie/pressroom
Mobile: 087 246 0358