YEW.L Share News (YEW)

(Sharecast News) - Ireland-focussed commercial property asset investor Yew Grove REIT has exchanged contracts to purchase a portfolio of six office buildings at Millennium Park, Naas, County Kildare, it announced on Thursday.
The AIM-traded firm said the purchase price for the portfolio would be €25.3 million, representing a net initial yield of 5.8% after accounting for purchase costs.

It said the portfolio was expected to have reversionary potential of more than 9%.

The portfolio had 141,000 square feet of modern offices over six buildings, as well as 773 car parking spaces and a six acre greenfield site.

Five of the office buildings were tenanted by foreign direct investment and large Irish enterprises, with one of the buildings vacant.

The combined leases had a weighted average unexpired lease term to break of around 2.5 years, and to lease expiry of approximately five years.

Yew Grove said the current annual rent roll for the portfolio was approximately €1.6m.

The portfolio is a part of the Millennium Park development in Naas, which is situated about 40 minutes from Dublin city centre and Dublin Airport.

It was 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 of the Millennium Park portfolio acquisition, and taking account of other announced acquisitions and disposals, Yew Grove said it would have a portfolio of 28 properties with a pro forma gross asset value of around €140m, and a current annualised rent roll of approximately €10.4m.

"We are pleased to have exchanged on this attractive portfolio of modern office buildings in a well located business park," said chief executive officer Jonathan Laredo.

"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.

"Having recently successfully raised the second tranche of our €100m share placing programme, we continue to effectively deploy our capital in assets at attractive reversionary yields with strong tenant covenants."