Yew Grove completes acquisition of €25.3m Kildare portfolio

Irish-listed real-estate investment trust Yew Grove has completed the acquisition of a portfolio of six office buildings at Millennium Park, Naas, Co Kildare for €25.3 million.

This represents a net initial yield of 5.8 per cent after accounting for purchase costs, the group said.

The portfolio is expected to have reversionary potential in excess of 9 per cent, Yew added.

It consists of 13,100sq m (141,000sq ft) of modern offices over six buildings, as well as 773 car-parking spaces and a six-acre greenfield site.

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Five of the office buildings are tenanted by foreign direct investment and large Irish enterprises, with one of the buildings currently vacant.

The combined leases have a weighted average unexpired lease term to break of about 2½ years and to lease expiry of about five years. The current annual rent roll for the portfolio is about €1.6 million.

The portfolio is a part of the Millennium Park development, which is situated about 40 minutes’ drive from Dublin city centre and Dublin Airport.

It is expected to benefit from the recent upgrade of the M7 motorway and significantly improved access from the new M7 interchange at Millennium Park, which is expected to open next month.

With completion of the Millennium Park acquisition, and taking account of other announced acquisitions and disposals, Yew Grove has a portfolio of 28 properties with a pro-forma gross asset value of about €140 million and a current annualised rent roll of about €10.4 million.

Yew Grove chief executive Jonathan Laredo said: "We are pleased to have completed the acquisition of this attractive portfolio of modern office buildings in a well-located business park.

“These are reversionary assets which will benefit from Yew Grove’s asset-management capabilities and will generate significant value for both tenants and our shareholders.

“Yew Grove 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, we continue to pursue a number of value-enhancing investment opportunities.”