Asset management is often thought of as purely an activity which improves rental yield or capital values: for example rent reviews, lease re-gears and letting vacancy. However, the impact that property has on the environment has become a core issue for both landlords and tenants and minimising that impact is at the heart of our asset management.
Yew Grove REIT plc (LON:YEW) owns over 30 buildings across Ireland, most of which are of a size and quality to attract and retain Government agencies and multi-national companies. Whilst we are involved in new construction for some tenants, most of our buildings are at least 12 years old because there was almost no construction in the country between 2008 and 2016 and since then most has been in central Dublin.
Although built to the regulations of the time, even the best buildings constructed before 2008 do not meet the standards of ‘near zero emissions’ required of all new builds today.
Across our portfolio we have engaged with our tenants on a number of projects: upgrading lighting, ventilation, heating and water systems; updating or installing building management software to allow more efficient use of existing utilities; better waste disposal and recycling; more reliance on renewable energy; green cleaning initiatives; providing more and/or better green space in and around the buildings; providing more facilities for cycling, electric car charging points and shower facilities.
We are firmly committed to this initiative and believe the effort and cost is worthwhile and beneficial for both landlord and tenant. Older buildings are usually rented at a discount to new builds; in regional Ireland that discount can be as large as 50%. But much of the existing stock is physically robust and well laid out and these projects improve them. Greener buildings hold their capital value longer, are cheaper to run and their useful life is extended, but perhaps most importantly-they are better places in which to work.
I will be updating you with some of the specific projects over the rest of this year and we will report on the progress we have made across the portfolio at the end of the year.
About Yew Grove REIT
Yew Grove Real Estate Investment Trust. We invest in office and industrial buildings attractive to multi-national companies and government bodies and provide our shareholders with a high quality and attractive level of income underpinned by stable and growing capital values.