Yew Grove REIT, the London- and Dublin-listed investor in Irish commercial real estate, looks set to be taken private by Canada’s Slate Office REIT.
The two parties have agreed the terms of a €1.017-per-share cash offer for Yew Grove, valuing the company at €127.8m (£108m) excluding debt.
That pricing is a premium of 1.7% to Yew Grove’s closing share price of €1 yesterday.
Announcing the plans, Yew Grove’s board noted that when the company listed in 2018, its goal had been to build a portfolio valued at up to €500m within three years, but that the team is now “conscious of the challenges of raising capital at the scale and timeframe required to fully exploit Yew Grove’s attractive investment pipeline”.
In its own announcement of the planned deal, Slate Office REIT’s chief executive, Steve Hodgson, said: “This is a transformational opportunity for Slate Office REIT to acquire a portfolio of modern properties underpinned by exceptional quality tenants. The proposed acquisition, upon completion, would improve the REIT’s portfolio metrics and the durability of our cash flows, generating immediate accretion for unit-holders. With this initial acquisition in Ireland, we would be well positioned to pursue other attractive growth opportunities across Europe.”
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
