Bank of Ireland Private Banking Limited acquires 50% stake in leading UK retail park for euro 300 million+

Bank of Ireland Private Banking Limited today (7 June 2007) announced its euro 309 million (Sterling 209million) acquisition of a 50% stake in the New Mersey Retail Park in Liverpool on behalf of clients. New Mersey Retail Park is the UK's 7th largest retail shopping park and currently comprises 30 retail units, over 1,900 car parking spaces and a total of 480,000 square feet. Tenants include leading brands such as Marks & Spencer, Next, Gap, River Island, B&Q and Currys. It is the primary out-of-town retail park serving Liverpool and is located along a main arterial route within a large catchment area. Significant employers such as Marriot Hotels, Littlewoods and Jaguar are all located within the immediate vicinity.

Private Banking has acquired the 50% stake from Hercules Unit Trust, a unit trust advised by British Land, who will retain a 50% interest in the property. Private Banking was advised by Morgan Williams. Hercules Unit Trust was advised by Wilkinson Williams.

Liverpool is the second largest city in the north west of England with a total population in the primary catchment area of over 1 million. It is an important tourist destination with over Sterling 1 billion spent per annum.

Peter Collins, Director of Property, Bank of Ireland Private Banking Limited commenting on the rationale behind the latest acquisition stated: New Mersey Retail Park fits perfectly with our Strategy for retail property. It is already a high performing retail park, situated in a Strong local market, and offers a number of excellent asset management opportunities to increase income over the next few years. We have had an excellent relationship with British Land for a number of years. We worked with them, for example, through the acquisition and eventual sale of Gallions Reach Shopping Park, a transaction that generated a 40% return on investment for our clients in less than two years.

In our Global Property Outlook published in March we highlighted the growing opportunity within the European retail sector. This sector is underpinned by Strong economic fundamentals. As consumer spending accelerates across Europe we believe that there is significant opportunity within selected retail geographic markets. Given the scale and dynamics of the UK retail market it is not surprising that we continue to identify highly attractive investment opportunities for our clients. This latest acquisition represents a Strategic Strengthening of our retail property portfolio, added Peter Collins.

End:

Contact:
Anne Mathews
Media Relations Manager
Bank of Ireland
Tel: 01 604 3836 or 087 246 0358

Tess Shaw
Bank of Ireland Private Banking
Tel: 01 637 8835 or 087 662 3270

Note to editors:
About Bank of Ireland Private Banking Limited Bank of Ireland Private Banking Limited has approximately euro 9 billion of assets & liabilities under management, with property accounting for almost euro 2 billion of the total. In addition to this latest acquisition, it has invested in prime commercial property markets including the UK, Belgium, France, The Netherlands, Sweden, Asia (South Korea) and the US. The Bank's portfolio of properties was returning 22% annualised returns from inception as of end of 2006.