Yew Grove REIT has announced that it has exchanged contracts to acquire Unit 2600, an Office Block located in Cork Airport Business Park. The €7.5 million acquisition represents a net initial yield of 7.85 per cent. after accounting for purchase costs. This is Yew Grove’s first investment in Cork.
Unit 2600
Unit 2600 is a two storey, 40,953 square foot office block which YEW Grove REIT says was refurbished in 2015 to a high standard. The block includes a 163-space car park and is tenanted by Clearstream Global Securities Services Ltd, a subsidiary of Deutsche Borse AG, under a 25 year lease with final expiry in just over five years’ time.
Completion of car park development in the IDA Athlone Business and Technology Park
Yew Grove REIT also says that it has completed the development of the car park on the IDA Athlone Business and Technology Park for its tenant, KCI Manufacturing (KCI). Yew Grove says that the car park, which ensures that KCI has sufficient parking for its expanding workforce, was completed ahead of schedule, on budget and is subject to a new lease with a maturity matching the existing lease on Yew Grove’s building leased to KCI, with breaks on 17 September 2023 and 2028.
Portfolio Update
Once completed, the investment in Cork Airport Business Park together with the Waterford acquisition announced on 8 February 2018, brings Yew Grove’s portfolio to 18 properties totaling in excess of 550,000 square feet in aggregate and generating an annualised rent roll of over €7.35 million. Yew Grove says that its portfolio totals almost €90 million in value representing near full deployment of the capital raised by the Company since its IPO in June 2018.
About Yew Grove REIT
Yew Grove REIT is an Irish REIT investing in office and industrial properties primarily outside Dublin’s central business district. Its shares are listed on AIM and on the Enterprise Securities Market of Euronext Dublin. The directors intend to build a portfolio of properties which is focused on commercial real estate assets in Ireland, with a particular focus on office and industrial assets let to Irish government entities and other State Bodies, IDA Ireland supported and other FDI companies, and larger corporates principally located:
- in Dublin city (other than the Dublin Central Business District);
- within the wider Dublin Catchment Area;
- in major regional cities and towns (especially those identified as hubs for industrial development under Project Ireland 2040)
- in IDA Ireland Business and Technology Parks
Yew Grove REIT maintains a pipeline of sites and deploys capital in accordance with this policy, spreading risk across property and tenant types, focussing on commercial-only property acquisitions and limiting exposure to the geographic target market. The investment policy is guided by macro-economic factors, commercial property trends, FDI (foreign direct investment) patterns and tenant requirements.
Ireland’s inward investment promotion agency, the IDA, is a non-commercial, semi-state body promoting Foreign Direct Investment into Ireland through a wide range of services. It partners with potential and existing investors to help them establish or expand their operations in Ireland.