Yew Grove REIT PLC Acquisition and Trading Update (2011L)
December 21 2018 - 2:01AM
UK Regulatory
TIDMYEW
RNS Number : 2011L
Yew Grove REIT PLC
21 December 2018
21st December 2018
Yew Grove REIT plc
(the "Company" or "Yew Grove")
Acquisition and Trading Update
Acquisition of Buildings B1, B2 and B3 on the IDA Business Park
in Letterkenny for EUR16 million
Yew Grove REIT plc, which owns a diversified portfolio of Irish
commercial property assets, is pleased to announce that it has
exchanged contracts on the acquisition of three office properties,
located in the IDA Business Park, Letterkenny, County Donegal for
an agreed price of EUR16 million, representing a net initial yield
of 8.35 per cent. after accounting for all purchase costs.
The buildings are tenanted by Optum Operations (Ireland) Ltd
under a 10 year lease with nine years of certain term remaining.
The leases are guaranteed by Optum's parent, the United Health
Group, the largest healthcare business globally and one of the US's
largest corporations by revenue.
The three buildings comprise 90,548 sq. ft. of net internal
space completed to Grade A specification, having undergone a major
refurbishment in 2017 prior to Optum entering the lease. In
addition, there are 688 surface car parking spaces on the 2.34 ha
(5.85 acre) site.
Trading Update
Yew Grove has now successfully deployed EUR76m since IPO in June
2018. The concurrently announced revolving credit facility of
EUR19.9m means that the Company has available resources of EUR16m
to acquire further properties in the near-term. The pipeline of
potential acquisitions remains significant.
Including the acquisition referred to above, annualised passing
rent is currently EUR6.3m. An independent valuation of the
portfolio at 31 December 2018 will be included in the Preliminary
Announcement in February and the Board of the Company is confident
this will show a further increase in NAV as compared with 30 June
2018.
As noted in the Company's interim results announcement in
September, our maiden dividend for 2018 was expected at that time
to be in a range of 1.0 - 2.0 cents per share, dependent on the
timing of further acquisitions prior to year-end. During this
period, negotiations and due diligence on recently announced
acquisitions and potential further near-term acquisitions have
taken somewhat longer than anticipated, with the result that the
dividend for the period from IPO to 31 December 2018 is now
expected to be marginally below the lower end of the previously
guided range. Taking account of the acquisitions now completed,
together with confirmation of new banking facilities with AIB to
support further acquisitions in the near-term, the Board of the
Company is confident to reiterate dividend guidance of 7c per share
for financial year 2019 based on the current share count.
Commencing with respect to First Quarter 2019, the Company intends
to pay dividends on a quarterly basis.
Commenting on the acquisition and trading update, Yew Grove CEO
Jonathan Laredo said:
"We are delighted to announce the acquisition of the IDA
Business Park assets in Letterkenny. The buildings have been
finished to a very high quality and the recent refurbishment is a
tangible sign of the tenant's commitment to the site and the area,
one of its largest operations outside of the US. Not only has Yew
Grove acquired very high quality properties but the purchase gives
the company a strong and secure income stream.
In the short period since IPO, Yew Grove has successfully
deployed the capital raised and has a strong pipeline of potential
acquisitions of well tenanted, well covenanted and high yielding
commercial real estate. The high quality rental income stream
positions us to pay a maiden dividend for 2018 and retain guidance
for a significant dividend increase in 2019. We look forward to
2019 and the continued delivery against our stated objectives."
Enquiries:
Yew Grove REIT plc Tel: +353 1 4853950
Jonathan Laredo, Chief Executive
Officer
Michael Gibbons, Chief Investment
Officer
Charles Peach, Chief Financial
Officer
Investec Bank plc
Joint Broker & ESM Advisor Tel: +353 1 421
Tommy Conway, Eoin Kennedy 0000
Joint Broker & NOMAD
David Anderson, Darren Vickers Tel: +44 207 5975970
Goodbody Stockbrokers UC
Joint Broker Tel: +353 1 667
David Kearney, Joe Gill 0400
Tel: + 353 1 662
Hume Brophy 4712
Media Enquiries yewgrove@humebrophy.com
Edel Bach, Karin O'Conor
Notes to editors:
Yew Grove REIT raised gross proceeds of approximately EUR75
million in June 2018 to invest in a diversified portfolio of Irish
commercial property, with a particular focus on well-tenanted
commercial real estate assets comprising office and industrial
assets let to Irish government entities (and other state bodies),
IDA Ireland supported and other FDI companies, and larger
corporates, located in attractive locations in the Dublin suburbs
and catchment area, main regional cities, and IDA business parks
(the "Geographic Target Market").
ENDS
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END
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