Yew Tree fund buys two industrial units at Airways estate in Dublin
Investment in adjoining buildings offers initial yield of 8.95 per cent
Essentra Packaging Ireland Ltd occupies both buildings on two 15-year leases with break options in year 10.
The purchaser, Yew Tree Commercial Property Fund, is guaranteed a nine-year income stream from Essentra Packaging Ireland Ltd before it has a break option in the 10th year of the lease. The initial yield will work out at 8.95 per cent.
Essentra occupies both buildings extending to 8,172sq m (87,969 sq ft) on two 15-year leases with break options in year 10. A rent of €300,000 applies in years one to four and €320,000 from year five. There will be open-market reviews every five years, starting in 2020. The current rent works out at €3.41 per square foot
Ollie Lyons of TWM reported strong interest in the investment in line with the increasing weight of money looking at industrial investments.