(Alliance News) - Ireland-focused property firm Yew Grove REIT PLC said Friday it acquired three industrial buildings at a business and technology park in Athlone for EUR13 million.
The three buildings cover 115,000 square feet and are located at the IDA Business & Technology Park in Garrycastle, with the purchase price representing a 7.6% net initial yield.
The deal will be funded by existing cash resources as well as drawing down on the debt facility already obtained by Yew Grove.
The weighted average unexpired lease term for the three buildings is 12.5 years. The annual rent roll stands at a combined EUR1.06 million.
"We are pleased to have expanded our footprint in Athlone, a major med-tech hub in Ireland," Yew Grove Chief Executive Officer Jonathan Laredo said. "These are desirable assets in one of the country's premier business and technology parks, and will allow the company to expand in line with our clients."
"The purchase was part funded with EUR10 million of new equity issued as the first tranche of a EUR100 million share placing programme," Laredo added.
"There remains significant opportunity to grow this portfolio, both through further acquisitions and through asset management opportunities within the existing properties, and these activities will generate superior returns for our shareholders," Laredo continued. "We continue to effectively deploy our capital in a portfolio at attractive yields with robust tenant covenants and very strong occupancy."
Shares in Yew Grove were untraded at EUR1.01 in London on Friday.
