Bank of Ireland Group offers excellent opportunity for investors through European Retail Property Portfolio

- Initial properties valued at over €1billion

Today, 16th October 2007, Bank of Ireland Group is delighted to announce the launch of their new European Retail Property Portfolio. For the first time, individual investors have an opportunity to tap into the capital growth of retail commercial properties through a dedicated property portfolio.

The portfolio, open for a limited time, has the potential for higher returns using a combination of investor funds and borrowed money to invest in a diversified portfolio of three to four professionally managed European retail properties. The portfolio will provide investors with improved diversification than investing in a single property in terms of different retail concepts, locations and varying leases. To date, two retail properties have been sourced with a value in excess of €1billion. The interest in these properties will make up over two-thirds of the portfolio and comprise of a retail park in Liverpool and a retail park in Zaragoza, Spain.

Bank of Ireland Private Banking will manage the portfolio with the objective of maximising returns. They currently have property assets of around €2.6billion under management on behalf of their clients. Based on disposals to date, investors have earned an average annualised return of 26.1%.

The portfolio aims to attract up to €150 million in investor funds in order to part-finance the purchase of prime retail property in targeted European countries. The investment horizon will be approximately seven to ten years, in order to take advantage of any capital appreciation that results from an anticipated upturn in the retail property sector in core European countries. The portfolio will be two-thirds seeded from launch, with the remaining equity to be allocated once one or two suitable properties have been identified and secured.

The portfolio is available through Bank of Ireland Life and the Group's Private Banking Division. Approximately two-thirds of the purchase price of the properties acquired will be financed through borrowing (gearing). The key advantage of gearing is that any gains in value on the property purchased with the loans also accrue to the investor, significantly enhancing potential investment returns. However, this also means that there is a greater increase in risk. The borrowing is non-recourse, which means that investors will not be personally liable for loan repayments as this is all managed within the Portfolio.

Mr. Peter Collins, Director, Private Banking, explained the attraction of the retail properties in core European countries. "Retail parks continue to be the most sought after commercial property in the European market, with total investment volume reaching €15 billion in 2006, reflecting a 60% increase from 2005. Overall the retail sector is a very liquid investment market with many international investors, and will provide strong exit opportunities from the individual investments when the time is right. Retail property is also less volatile than the office sector as it is more supply constrained. In fact, the provision of shopping centres in Europe per head is actually eight times lower than that of the US."

Bernard Walsh, Head of Investments, Bank of Ireland Life believes that the European economy is very favourable for this type of investment and comments; "The European economy has performed strongly in the last five years with unemployment continuing to fall. This growth has driven improved consumer confidence and incomes, which combined with positive demographics in the main European countries, provide a very favourable backdrop for investing in the European retail sector. The countries chosen for investment will all share three common themes; a high level of consumer spending; an undersupply of modern shopping formats with a constrain in terms of future supply and an excellent potential for strong rental growth."

The portfolio is targeted at experienced investors seeking growth and who are prepared to accept an element of risk. The minimum investment required to participate in the fund is €50,000 and the fund will close by 31st January 2008 - or sooner if fully subscribed. Further details are available on request from the Investment Adviser at your local Bank of Ireland branch.

ENDS

Notes to Editors:

Full product details are available in a product brochure, which is available on request

Date: 16th October 2007

For further information contact:
Laura Erskine
Public Relations Manager
Bank of Ireland Life
Tel:01 617 2586
Mob:086 856 2929

Audra Dutton
Group Consumer Communications
Bank of Ireland
Tel:01 604 3750
Mob:086 818 3932