(Sharecast News) - Irish commercial property investor Yew Grove REIT announced on Friday that it has reached an agreement to purchase an office building at the IDA Ireland Business and Technology Park, Garrycastle, Athlone.
The AIM-traded real estate investment trust said the purchase price for the building would be €12m (£10.33m), which represented a net initial yield of 7.2% after accounting for purchase costs, and had reversionary potential linked to the consumer price index.
It said the purchase was expected to complete by 3 January.
The building, constructed in 2016, features 45,370 square feet of modern office space with associated car parking, and was leased to an FDI tenant.
Yew Grove said the lease had a weighted average unexpired lease term to break of 8.9 years, and to lease expiry of 11.9 years.
The total current rent roll for the building was €0.95m per annum.
It said the acquisition of the building brought Yew Grove's total footprint in the IDA Ireland park to around 205,000 square feet in five buildings, with an aggregate annual rent of €2.4m from four different tenants.
"We are pleased to have expanded our footprint in Athlone, a major med-tech hub in Ireland," said chief executive officer Jonathan Laredo.
"This is a desirable asset with an excellent tenant in one of the country's premier business and technology parks and will allow the Company to expand in line with our clients."
Laredo said there remained "significant opportunity" to grow the portfolio, both through further acquisitions and through asset management opportunities within the existing properties, with those activities set to generate superior returns for shareholders.
"We continue to effectively deploy our capital in a portfolio at attractive yields with robust tenant covenants and very strong occupancy."
27 Jan 2022 21:56
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