# Yew Grove REIT make acquisitions in Dundalk and Citywest

- Link: https://www.directorstalkinterviews.com/yew-grove-reit-make-acquisitions-in-dundalk-and-citywest/412991284
- Published: 2021-05-21T07:21:04+01:00
- Author: Giles

**Yew Grove REIT plc** (LON:YEW, Euronext:YEW), which owns a diversified portfolio
of Irish commercial property assets, has today announced that it has exchanged contracts
for the purchase of an industrial building in Dundalk and two adjoining office properties
in Citywest Dublin.

In Dundalk, the Company has exchanged contracts on Tanola House on Coes Road, Dundalk,
a recently constructed high bay industrial building of 86,451 sq. ft. over two adjoining
blocks. The property has a 12.5m eaves height, 120 car parking spaces and is tenanted
by a US multinational under two leases which together have a weighted average unexpired
lease term (“WAULT”) to first break of approximately 8.4 years and a WAULT to expiry
of 18.4 years. Tanola House was acquired for c. €8 million, with a current annual
rent of €601,000 stepping up in approximately four years across both leases to €
631,000, representing a net initial yield of 6.9% and increasing to 7.3% at the 
step up.

The Company has also exchanged contracts to purchase Blocks E&F, Citywest Dublin,
for €11 million. The property has two adjoining office blocks of 45,972 sq. ft. 
with 165 car parking spaces and is fully tenanted by three multinational tenants
paying a current annual rent of €984,000. This represents a net initial yield of
8.2% with a potential reversionary yield of 9.2%. The property has a WAULT of 4.0
years to first break and 6.4 years to expiry.

On completion of these transactions, Yew Grove will have a portfolio of 24 properties
with a proforma gross asset value of approximately €162 million (which will rise
to an estimated €172 million on completion of the forward funding transaction in
Athlone) and a current annualised rent roll of approximately €12.9 million.

The purchases were funded utilising the proceeds of the Company’s recent equity 
issue and debt capacity from its revolving credit facility. 

Yew Grove REIT has a differentiated and diverse portfolio of well tenanted commercial
office and industrial properties situated outside of the Dublin central business
district.  The Company’s geographic target market continues to combine properties
with tenants with strong credit quality and attractive purchase yields and rising
rents.

.

> **Commenting on the transactions, Yew Grove CEO Jonathan Laredo, said:**
> “We are pleased with the acquisitions in Dundalk and Citywest, the new properties
> are reversionary and will benefit from Yew Grove’s asset management capabilities,
> which should generate significant value for both tenants and our shareholders.
> “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.”

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