Saturday 19 October 2019

Yew Grove Reit announces share issue programme

Jonathan Laredo, Yew Grove CEO
Jonathan Laredo, Yew Grove CEO
Ellie Donnelly

Ellie Donnelly

Yew Grove Reit is issuing up to 100 million new shares through a 12 month share issue programme.

The proceeds will be used to fund further acquisitions.

Shares will be issued in a number of tranches, with the initial placing of between eight million and 10 million initial placing shares at the price of €1.00 each.

Yew Grove said it has identified an “attractive industrial property portfolio” that is available for acquisition for €13m in value, representing a 7.6pc net investment yield.

Additionally, a projected pipeline of acquisitions with a combined cost exceeding €70m has been identified and is being progressed.

Jonathan Laredo, CEO of Yew Grove Reit, said: "Since our IPO last year we have built a strong portfolio of diversified and differentiated Irish commercial property, offering attractive yields.”

“With the new funds we are raising as part of our share issuance programme we have the opportunity to significantly expand this portfolio and take advantage of the investment opportunities we see in our target areas of the Irish commercial property market.”

As a Reit, Yew Grove is a special type of company that benefits from reduced taxation - including not having to pay corporation tax on rental profits or the standard capital gains on asset sales, as long as it meet criteria including only investing in property and distributing the vast bulk of income as dividends each year.

Investec is acting as Euronext growth advisor, nominated adviser and joint bookrunner, alongside Goodbody as joint bookrunner and Guy Butler as placing agent to the company in relation to the initial placing.

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