Yew Grove REIT plc (LON:YEW, Euronext:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced a trading update covering recent asset management and non core property sale developments.
The Company has announced it has agreed the letting of 20,268 sq. ft. (the first floor) of Unit 2600, Cork Airport Business Park to Alter Domus Fund Services Ireland Ltd along with 79 carparking spaces. The lease term is 15 years with break options at 5 and 10 years at a headline rate of €16.50 per sq. ft. plus a licence for 79 additional car spaces at a rent of €200 per car space per annum. The lease facilitates Alter Domus’ ongoing expansion of its Cork operations. Alter Domus is a leading provider of integrated solutions for the alternative investment industry.
The Company has also signed two further new leases, both in the Bridge Centre in Tullamore. The first, to An Post, is for the Company’s current units 23 and 23a. The units comprise a prime, 2,260 sq. ft. unit at the front of the centre with offices above. The lease is for 10 years at an annual rent of €28.53 per sq. ft. The second is for 1,193 sq. ft. in Unit 11 to Byron Distribution Ltd, again for a 10 year lease but at a rent of €27.07 per sq. ft. All of the Yew Grove units at the Bridge Centre are now fully let with no outstanding arrears. The Yew Grove units in the Bridge Centre now have an average rent of €25.65 per sq.ft., a WAULT to break of 6 years and a WAULT to expiry of 8 years.
Yew Grove has also progressed its plans to sell non-core properties. The vacant industrial unit at Holly Avenue, Stillorgan, was sold for total proceeds of €1.463 million in November 2020 (11% ahead of the 30 June 2020 independent valuation). The Company also sold Units F4 and F5 at Centrepoint Business Park, Clondalkin, County Dublin, for €950,000 which completed in early December, also 11% ahead of the 30 June 2020 independent valuation.
The effect of these transactions is to increase the Company’s annual rent roll to €11.3 million and to reduce the vacancy by ERV from 7.2% to 3.9% of the Company’s portfolio. Additionally, a number of rent reviews are currently in negotiation and the Company will provide an update when matters are concluded early in the New Year.
Jonathan Laredo, Chief Executive of Yew Grove, commented:
“Despite all of the economic disruption and personal pain wrought by the Covid-19 pandemic, Ireland has shown its resilience, both economically, led by an outstanding performance from its export led businesses and through effective control of the spread of infection. With the reopening of the economy and the prospect of vaccination programmes being rolled out from early next year, I look forward to the return of normality and a prosperous, less socially distanced 2021.”
