ISE - The Irish Stock Exchange plc

07/19/2019 | Press release | Distributed by Public on 07/19/2019 09:11

Acquisition of Portfolio

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 €13 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 24th 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 €1.06 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. €1.5 million.

Portfolio Update

When completed, this investment brings Yew Grove's total portfolio to 22 properties with an annualised rent roll of over €7.9 million and a portfolio value of €102.4 million. The rent roll excludes any rent for the Cork Airport Business Park property, which had an annual rent of €0.63 million and for which the Company received a lease surrender payment of €3.0 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 €300-500 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 €10 million of new equity issued as the first tranche of a €100 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.'


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:

David Anderson, Darren Vickers

Tel: +44 (0) 20 7597 5970

ESM Advisor & Joint Broker:

Tommy Conway, Eoin Kennedy

Tel: +353 (1) 421 0000

Goodbody Stockbrokers

Joint Broker:

David Kearney, Joe Gill

Tel +353 (1) 667 0400

IFC Advisory

Financial PR

Tim Metcalfe, Graham Herring, Heather Armstrong

Tel +44 203 934 6634

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.