Yew Grove exchanges contracts on Irish assets

Real estate investment trust Yew Grove has exchanged contracts for the purchase of an industrial building in Dundalk, Ireland and two adjoining office properties in Citywest Dublin.

In Dundalk, Yew Grove stated it had agreed to part with roughly €8.0m to acquire Tanola House on Coes Road, a recently constructed high bay industrial building of 86,451 square feet over two adjoining blocks, currently leased by a US multinational under two leases.

Tanola House has a current annual rent of €601,000 stepping up in approximately four years across both leases to €631,000, representing a net initial yield of 6.9% and increasing to 7.3% at the step up.

As far as the Dublin acquisitions were concerned, Yew Grove exchanged contracts to purchase Blocks E&F, Citywest Dublin, for €11.0m. The property has two adjoining office blocks of 45,972 square feet.

The AIM-listed group stated the assets were fully tenanted by three multinational tenants paying a current annual rent of €984,000, representing a net initial yield of 8.2% with a potential reversionary yield of 9.2%.

Both purchases were funded utilising proceeds from Yew Grove's recent equity issue and debt capacity from its revolving credit facility.

"On completion of these transactions, Yew Grove will have a portfolio of 24 properties with a proforma gross asset value of approximately €162.0m (which will rise to an estimated €172.0m on completion of the forward funding transaction in Athlone) and a current annualised rent roll of approximately €12.9m," said Yew Grove.

As of 1000 BST, Yew Grove shares were untraded at €0.98 each.