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Yew Grove REIT

Yew Grove REIT complete acquisition of portfolio of six office properties

Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has today announced that, further to the announcement on 19 December 2019, it has now completed the acquisition of a portfolio of six office buildings at Millennium Park, Naas, County Kildare. The purchase price for the Portfolio is €25.3 million, which represents a net initial yield of 5.8 per cent. after accounting for purchase costs. The Portfolio has reversionary potential expected to yield in excess of 9 per cent.

The Portfolio has 141,000 sq. ft. of modern offices over six buildings, as well as 773 carparking spaces and a six-acre greenfield site. Five of the office buildings are tenanted by foreign direct investment (“FDI”) and large Irish enterprises, with one of the buildings being vacant. The combined leases have a weighted average unexpired lease term (WAULT) to break of approximately 2.5 years and to lease expiry of approximately 5 years. The current annual rent roll for the Portfolio is approximately €1.6 million.

The Portfolio is a part of the Millennium Park, Naas development which is situated approximately 40 minutes’ drive from Dublin City Centre and Dublin Airport. It is expected to benefit from the recent upgrade of the M7 motorway and significantly improved access from the new M7 interchange at Millennium Park, which is expected to open in March 2020.

With completion of the Millennium Park Portfolio acquisition, and taking account of other announced acquisitions and disposals, Yew Grove has a portfolio of 28 properties with a proforma gross asset value of approximately €140m and a current annualised rent roll of approximately €10.4m.

Commenting on the acquisition, Yew Grove CEO Jonathan Laredo, said:

“We are pleased to have completed the acquisition of this attractive portfolio of modern office buildings in a well-located business park. These are reversionary assets which will benefit from Yew Grove’s asset management capabilities and will generate significant value for both tenants and our shareholders.

“Yew Grove has a differentiated and diverse portfolio of well tenanted commercial office and industrial properties outside of the Dublin central business district. The Company’s geographic target market continues to combine attractive purchase yields and rising rent levels. Against these market dynamics, we continue to pursue a number of value enhancing investment opportunities.”

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.