(Alliance News) - Real estate investor Yew Grove REIT PLC announced the acquisition of an industrial building in Dundalk and two adjoining office properties in Citywest Dublin for around EUR19 million total on Friday.
Yew Grove has acquired a 86,451 square foot industrial building in Dundalk, Ireland, for around EUR8 million. The current tenant is a US multinational who will provide initial rental income of EUR601,000 annually. This rental income represents a net initial yield of 6.9%, which is predicted to rise to 7.3% as rent increases to EUR631,000 after around four years.
In Citywest Dublin, the real estate investor has acquired 45,972 square feet of office space across two adjoining properties for around EUR11 million. The properties have three multinational tenants paying rent of EUR984.000 annually. Incoming rent provides a net initial yield of 8.2%.
"The purchases were funded utilising the proceeds of the company's recent equity issue and debt capacity from its revolving credit facility", the company said.
With these deals, the Dublin-based investor in Irish commercial property is expanding its portfolio to 24 properties total with a gross asset value of around EUR162 million and annual contracted rental income of EUR12.9 million.
"We are pleased with the acquisitions in Dundalk and Citywest, the new properties are reversionary and will benefit from Yew Grove's asset management capabilities, which should generate significant value for both tenants and our shareholders," said Chief Executive Jonathan Laredo.
Yew Grove shares ended flat at EUR0.98 each in London on Friday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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