Canada’s Slate Office REIT has confirmed a near-€128m (£107.5m) offer for Irish real estate investor Yew Grove REIT.
Yew Grove’s board is recommending that investors accept the €1.017 per share offer, news of which the company first flagged earlier this week.
The offer values Yew Grove, which is listed in London and Dublin, at €127.8m excluding debt. It is priced at a premium of 1.4% to Yew Grove’s EPRA net tangible assets per share as of June.
Slate Office REIT 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.”
Jonathan Laredo, chief executive of Yew Grove, said: “Despite the company’s success in acquiring attractive properties and a multi-year track record of asset management which has improved those properties and funded high quality and growing dividends to our shareholders, the company has found it increasingly difficult to raise sufficient capital to meet our aspirations, and our shareholders’ expectations, for growth.
“To that end we welcome an approach which provides shareholders with a sale price at above our latest published NAV whilst allowing the business access to growth capital.”
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