Yew Grove has exchanged contracts to buy an industrial site and two office blocks in Ireland for a combined €19m (£16.4m). The deals increase the listed investor’s property portfolio to 24 buildings.
The London-listed company paid €8m for Tanola House, a recently completed industrial building in Dundalk, in the north-east of Ireland. The site contains 86,451 sq ft over two adjoining blocks.
It is occupied by an unnamed tenant described by Yew Grove as “a US multinational,” under two leases which have an average lease term to first break of approximately eight years and an average term to expiry of 18 years.
Tanola House has annual rent of €601,000, rising in four years to €631,000, representing a net initial yield of 6.9% and increasing to 7.3%.
Separately, Yew Grove paid €11m for two adjoining office blocks containing 45,972 sq ft of space in Citywest on the southwestern edge of Dublin.
The blocks are fully occupied by three “multinational tenants”, paying a combined annual rent of €984,000, representing a net initial yield of 8.2%.
The property has an average lease term to first break of approximately four years and an average term to expiry of six years.
Yew Grove chief executive Jonathan Laredo said the new properties were “reversionary and will benefit from Yew Grove’s asset management capabilities, which should generate significant value for both tenants and our shareholders”.
He added: “Having again demonstrated our ability to effectively and rapidly deploy capital, we remain focused on the significant and valuable opportunities in today’s market to acquire well-built, well-tenanted assets.”
Yew Grove said its portfolio was now valued at about €162m, with an annual rent roll of €12.9m. The deals were funded using the proceeds of a recent equity issue and debt capacity from its revolving credit facility.
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