Yew Grove real estate investment trust (REIT) has acquired two office buildings in East Wall Dublin for €29m.
The One and Three Gateway office buildings, which comprise some 94,793 sq ft and are let to the Electricity Supply Board of Ireland, Whirlpool Corporation and Colt Technology Services, at 97pc occupancy, were included as part of the property pipeline in the recently listed company’s admission document.
The buildings’ purchase price of €29m reflects a net initial yield of 6.5pc and a gross reversionary yield exceeding 8.5pc, a statement from Yew Grove said.
Commenting on the announcement, Yew Grove chief executive Jonathan Laredo said he was “pleased” to announce the company’s first acquisition since its initial public offering (IPO).
“The key attractions of these buildings were the quality of their location, build and tenants.”
“The relatively short unexpired lease term and minor vacancy allows the company to actively manage the buildings which we hope will grow the income and capital value of the properties over the next few years,” Mr Laredo said.
The buildings together have a weighted average unexpired lease term of 2.8 years to break and four years to expiry.
Earlier this month Yew Grove raised €75m on its IPO.
The company said that its investment objective is to provide shareholders with good quality income from a portfolio of property comprising of well-tenanted commercial real estate in “strategic centres” around Ireland.
This will primarily include office and industrial assets let to Government entities, State bodies, IDA Ireland-supported and other foreign direct investment companies, as well as larger corporates located in Dublin, in IDA Ireland business parks, and in major regional hubs, especially those identified under Project Ireland 2040.
REF Irish Independent