Yew Grove REIT PLC Acquisition of Portfolio (1732G)
July 19 2019 - 9:30AM
UK Regulatory
TIDMYEW
RNS Number : 1732G
Yew Grove REIT PLC
19 July 2019
19th July 2019
Yew Grove REIT plc
(the "Company" or "Yew Grove")
Acquisition of portfolio of three industrial properties, IDA
Business and Technology Park, Athlone.
Yew Grove REIT plc (LSE:YEW, Euronext:YEW), which owns a
diversified portfolio of Irish commercial property assets, is
pleased to announce that it has exchanged contracts on a portfolio
of three industrial buildings at the IDA Business and Technology
Park, Garrycastle, Athlone (the "Portfolio"). The purchase price
for the Portfolio was EUR13 million, which represents a net initial
yield of 7.6 per cent. after accounting for purchase costs and a
potential reversionary yield in excess of 8 per cent. The
consideration has been funded from a combination of cash, including
drawing on the Company's debt facility and the net proceeds from
the equity placing completed on 12 July 2019. The purchase should
be completed by 24(th) July 2019.
The Portfolio totals 114,498 sq. ft. of modern high tech space,
in three buildings with associated carparking, leased to PPD
Development Ireland Ltd, KCI Manufacturing and Signature Ortho
Europe Ltd. The combined leases have a weighted average unexpired
lease term (WAULT) to break of 3.9 years and to lease expiry of
12.5 years. The total current rent roll for the three properties is
EUR1.06 million.
The building occupied by KCI Manufacturing adjoins Yew Grove's
existing Athlone facility, also occupied by KCI Manufacturing and
brings the total size of the KCI facility to c. 100,000 sq. ft..
The 3 new buildings bring Yew Grove's total footprint in the park
to c. 160,000 sq. ft. with an aggregate rent of c. EUR1.5
million.
Portfolio Update
When completed, this investment brings Yew Grove's total
portfolio to 22 properties with an annualised rent roll of over
EUR7.9 million and a portfolio value of EUR102.4 million. The rent
roll excludes any rent for the Cork Airport Business Park property,
which had an annual rent of EUR0.63 million and for which the
Company received a lease surrender payment of EUR3.0 million under
an agreement to break the lease. The Company is confident it will
re-let the building.
Yew Grove REIT has a differentiated and diverse portfolio of
well tenanted commercial office and industrial properties outside
of the Dublin central business district. The Company's geographic
target market continues to combine attractive purchase yields and
rising rent levels. Against these market dynamics, the Company
continues to pursue a number of value enhancing investment
opportunities. The Company announced a share issuance programme in
June 2019 under which the Company is able to issue up to 90 million
new ordinary shares in order to part-fund any such acquisitions.
The Board believes that consolidation within its target market
offers the opportunity to build a EUR300-500 million portfolio of
high-yielding, high-quality assets over a three-year period.
Commenting on the acquisition, Yew Grove CEO Jonathan Laredo
said:
"We are pleased to have expanded our footprint in Athlone, a
major med-tech hub in Ireland. These are desirable assets in one of
the country's premier business and technology parks, and will allow
the Company to expand in line with our clients.
The purchase was part funded with EUR10 million of new equity
issued as the first tranche of a EUR100 million share placing
programme.
There remains significant opportunity to grow this portfolio,
both through further acquisitions and through asset management
opportunities within the existing properties, and these activities
will generate superior returns for our shareholders. We continue to
effectively deploy our capital in a portfolio at attractive yields
with robust tenant covenants and very strong occupancy."
Enquiries:
Yew Grove REIT plc Tel: +353 (1) 480
3960
Jonathan Laredo, Chief Executive Officer
Michael Gibbons, Chief Investment Officer
Charles Peach, Chief Financial Officer
Investec Bank plc
NOMAD & Joint Broker: Tel: +44 (0) 20 7597
David Anderson, Darren Vickers 5970
ESM Advisor & Joint Broker: Tel: +353 (1) 421
Tommy Conway, Eoin Kennedy 0000
Goodbody Stockbrokers
Joint Broker: Tel +353 (1) 667 0400
David Kearney, Joe Gill
IFC Advisory Tel +44 203 934 6634
Financial PR
Tim Metcalfe, Graham Herring, Heather
Armstrong
Notes to editors:
Yew Grove REIT plc, quoted on the London Stock Exchange's AIM
and Euronext Dublin, is an Irish commercial real estate company
invested in a diversified portfolio of Irish commercial property.
Yew Grove has a particular focus on well-tenanted commercial real
estate assets comprising of office and industrial assets outside of
Dublin's Central Business District.
Yew Grove's highly experienced team has a proven track record in
commercial property investment in Ireland and internationally, and
is focused on delivering results. Its investment approach is
strategic, not speculative, principally on assets that are let,
pre-let or to be let after refurbishment. Shareholders are provided
with stable, long-term income from a diverse portfolio of
commercial property comprising well-tenanted real estate in
strategic centres let to Irish government entities and other state
bodies, IDA Ireland supported and other FDI companies, and larger
corporates.
ENDS
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END
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