Yew Grove REIT buys six offices – Yew Grove REIT has exchanged contracts to purchase a portfolio of six office buildings at Millennium Park, Naas, County Kildare. The purchase price will be EUR25.3 million, which represents a net initial yield of 5.8 per cent. after accounting for purchase costs. The portfolio is expected to have reversionary potential in excess of 9%.
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 is approximately EUR1.6 million.
The Millennium Park, Naas development 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.
On completion, Yew Grove will have a portfolio of 28 properties with a proforma gross asset value of approximately EUR140m and a current annualised rent roll of approximately EUR10.4m.
The company placed 26.6m shares, raising gross proceeds of EUR25.8 million, on 4 December 2019. This was the second tranche of a share issuance programme launched in June 2019, giving the company the ability to issue up to 100 million new ordinary shares in order to fund future acquisitions. The board believes that consolidation within its target market offers the opportunity to build a EUR300-500 million portfolio of high-yielding, high-quality assets over a three-year period.
YEW : Yew Grove REIT buys six offices