Ireland’s Yew Grove REIT has completed a deal to buy a portfolio of six office buildings valued at €25.3m (£21.5m).
The deal for the buildings, at Millennium Park in Naas, County Kildare, reflected a 5.8% initial yield after purchase costs. It has reversionary potential expected to yield in excess of 9%.
The portfolio comprises 141,000 sq ft of modern offices over six buildings, 773 car parking spaces and a six-acre greenfield site.
Five of the office buildings are let by foreign direct investment and large Irish enterprises. One building is vacant.
The combined leases have a weighted average unexpired lease term to break of around 2.5 years, and to lease expiry of approximately five years. The current annual rent roll totals around €1.6m.
Including this latest deal, Yew Grove has a portfolio of 28 properties with €140m pro forma gross asset value and a current annualised rent roll of €10.4m.
Jonathan Laredo, chief executive of Yew Grove, said: “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.”
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