Commercial property investor Yew Grove has purchased an office building at the IDA Ireland Business and Technology Park in Athlone for €12m.
The price represents a net initial yield of 7.2pc.
The building has 45,370 sq. ft. of office space and is leased to a foreign direct investment tenant.
The lease has a weighted average unexpired lease term to break of 8.9 years and an expiry of 11.9 years.
The total current rent roll for the building is €950,000 per year.
Jonathan Laredo, Yew Grove CEO, said that there is still “significant opportunity” to grow the portfolio, both through further acquisitions and asset management opportunities within the existing properties.
“These activities will generate superior returns for our shareholders,” Mr Laredo said.
We continue to effectively deploy our capital in a portfolio at attractive yields with robust tenant covenants and very strong occupancy.”
This latest acquisition brings Yew Grove’s total footprint in this IDA Ireland park to around 205,000 sq. ft. in five buildings, with an aggregate annual rent of €2.4m from four different tenants.