Yew Grove REIT PLC Completion of Acquisition (2672C)

TIDMYEW

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 EUR25.3 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 EUR1.6 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 EUR140m and a current annualised rent roll of approximately EUR10.4m.

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] 
                                                 3960 
 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                                   Tel [phone] 
  Financial PR                                   6630 
  Tim Metcalfe, Graham Herring 
 
 

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

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February 07, 2020 02:01 ET (07:01 GMT)