Yew Grove REIT : Completion of Acquisition

Regulatory Story
Go to market news section
Yew Grove REIT PLC - YEW Completion of Acquisition Released 07:00 07-Feb-2020

RNS Number : 2672C

Yew Grove REIT PLC

07 February 2020

7 February 2020

Yew Grove REIT plc

(the 'Company' or 'Yew Grove')

Completion of acquisition of portfolio of six office properties at Millennium Park, Naas, County Kildare

Yew Grove REIT plc (LSE:YEW, Euronext:YEW), which owns a diversified portfolio of Irish commercial property assets, is pleased to announce that, further to the announcement on 19 December 2019, it has now completed the acquisition of a portfolio of six office buildings at Millennium Park, Naas, County Kildare (the 'Portfolio'). The purchase price for the Portfolio is €25.3 million, which represents a net initial yield of 5.8 per cent. after accounting for purchase costs. The Portfolio has reversionary potential expected to yield in excess of 9 per cent.

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 for the Portfolio is approximately €1.6 million.

The Portfolio is a part of the Millennium Park, Naas development which 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, which is expected to open in March 2020.

With completion of the Millennium Park Portfolio acquisition, and taking account of other announced acquisitions and disposals, Yew Grove has a portfolio of 28 properties with a proforma gross asset value of approximately €140m and a current annualised rent roll of approximately €10.4m.

Commenting on the acquisition, Yew Grove CEO Jonathan Laredo, said:

'We are pleased to have completed the acquisition of this attractive portfolio of modern office buildings in a well-located business park. 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.

'Yew Grove has a differentiated and diverse portfolio of well tenanted commercial office and industrial properties outside of the Dublin central business district. The Company's geographic target market continues to combine attractive purchase yields and rising rent levels. Against these market dynamics, we continue to pursue a number of value enhancing investment opportunities.'

Enquiries:

Yew Grove REIT plc	Tel: [phone]
Jonathan Laredo, Chief Executive Officer
Michael Gibbons, Chief Investment Officer
Charles Peach, Chief Financial Officer
Goodbody Stockbrokers UC	Tel [phone]
Joint Broker & Euronext Growth Advisor
David Kearney, John Flynn, Edel O'Reilly, Ronan Bransfield
Liberum Capital Limited
Joint Broker & Nomad	Tel [phone]
Richard Crawley, Jamie Richards, Jonathan Wilkes-Green
IFC Advisory Financial PR Tim Metcalfe, Graham Herring		Tel [phone]

Notes to editors:

Yew Grove REIT plc, quoted on the London Stock Exchange's AIM and Euronext Growth Dublin, is an Irish commercial real estate company invested in a diversified portfolio of Irish commercial property. Yew Grove has a particular focus on well-tenanted commercial real estate assets comprising of office and industrial assets outside of Dublin's Central Business District.

Yew Grove's highly experienced team has a proven track record in commercial property investment in Ireland and internationally, and is focused on delivering results. Its investment approach is strategic, not speculative, principally on assets that are let, pre-let or to be let after refurbishment. Shareholders are provided with stable, long-term income from a diverse portfolio of commercial property comprising well-tenanted real estate in strategic centres let to Irish government entities and other state bodies, IDA Ireland supported and other FDI companies, and larger corporates.

ENDS

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQFFFSIFEIRIII

Close

London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

©2014London Stock Exchange plc. All rights reserved

Completion of Acquisition - RNS