Yew Grove Reit has completed the purchase of six office buildings in Naas, Co Kildare for €25.3m. The acquisition grows the total value of its property portfolio by more than a fifth.
The Irish-listed firm said five of the Millennium Park buildings are occupied by a mix of foreign multinationals and domestic enterprises that pay approximately €1.6m in annual rent, while the sixth is vacant.
Together the buildings offer 13,000 square metres (141,000 square feet) of office space and 773 parking spaces alongside a 2.5 hectare (six acre) greenfield site.
Yew Grove said the acquisition expands its portfolio to 28 properties with a gross asset value of €140m and an annual rent roll totalling about €10.4m.
Chief executive Jonathan Laredo said the Naas acquisition “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,” he said. “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."
Yew Grove’s shares were unchanged at €0.98 in midday trade on Euronext Dublin.
Investec economist Ronan Dunphy said the Millennium Park acquisition “is significant for the group and represents circa 18pc of its portfolio by value”. He said it offers an initial net yield of 5.8pc after costs “although reversionary potential in excess of 9pc is anticipated”.
“Following last week’s increase to its debt facilities, and the remaining capacity in its share issuance programme, the group is well set to continue its acquisition activities,” Mr Dunphy said.