Dublin-listed Yew Grove buys Cork office block for €7.5m

Irish real-estate investment trust, Yew Grove, has bought a two-storey 40,953sq ft office block in Cork Airport Business Park for €7.5 million. The trust said the acquisition represented a net initial yield of 7.85 per cent after accounting for purchase costs.

Clearstream Global Securities Services, a Deutsche Bank subsidiary, is a tenant of the property under a 25-year lease, which is due to expire in five years' time.

The office block was refurbished in 2015 and comes with a 163-space car park.

"We are pleased to have made our first investment in the city of Cork and to have acquired such an attractive asset in one of the city's premier business parks," said Yew Grove chief executive Jonathan Laredo.

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The Reit said the acquisition brought its portfolio to 18 properties totalling more than 550,000sq ft and generating an annual rent roll of more than €7.35 million.

Full deployment

The portfolio totals almost €90 million in value and represents near full deployment of the capital raised by the company since its initial public offering (IPO) last June.

Yew Grove, which earlier this month announced it had generated a pretax profit of €2.3 million between April and December 2018, specialises in office and industrial properties primarily outside Dublin’s central business district that can be leased to State entities and State-backed firms.

In a note to investors Goodbody analyst Colm Lauder said the acquisition would add more than €630,000 to Yew’s annualised rent roll.

“The acquisition this morning of 2600 Cork Airport Business Park is a further step in the right direction for Yew Grove. The Reit has consistently acquired high-quality income streams from regionally important properties as it enhances the income characterises of its portfolio,” Mr Lauder said.