AIB is still hoping to get close to its asking price of €35 million for 12 branch buildings in Munster which have been quietly on the market for several weeks.

The bank's decision to seek a single buyer for the portfolio in an off-market deal underlines the softening in the investment market and the tightening money supply.

Exactly a year ago property developer Gerry Gannon paid over €100 million for 12 of the best AIB branches in Dublin in a deal which showed a net yield of 2.8 per cent.

The €35 million being sought for the 12 Munster branches would give a yield of 4.25 per cent, but with no takers yet emerging at that level the odds are that the bank will have to drop its asking price to at least €32.5 million. At that price the yield would improve to 4.5 per cent.

The bank's decision to look for a buyer for the entire portfolio was obviously prompted by a fear that some of the weakest branches - such as those in Kilrush, Clonakilty and Bantry - could be left unsold if they were marketed individually.

Agent Savills Hamilton Osborne King has a number of buyers interested in the 12 branches, but there is even more interest in some of the best-located individual buildings.

AIB has undertaken to rent back all the branches under 20-year leases with five yearly upwards only rent reviews. The bank will have break options in year 15.

The highest rent to be paid will be €215,000 for the branch in Thurles, Co Tipperary. Other rents will be €194,000 in Tralee; €166,000 for Ennis; €157,500 for Killarney; €155,500 for Charleville; €153,000 for William Street in Limerick; €118,000 for Skibbereen; €113,500 for Nenagh; €108,000 for Bantry; €103,500 for Dingle; €103,000 for Clonakilty and €77,500 for Kilrush.