Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced an update covering recent asset management.
The Company has agreed a new lease for the entirety of the Gateway Three building, East Wall Road, Dublin to the Electricity Supply Board (“ESB”) group. The ESB, which is majority (95%) owned by the Irish government, had occupied all of this building on a lease for 43,220 sq ft and 30 car parking spaces which would have expired on 31 December 2021. The ESB has signed a lease extension from 1 January 2021 for a further term of five years with an option of an additional one year extension at an initial headline rate of €29 per sq. ft. in line with the Company’s view on ERV.
Since the start of the new year, the Company has also agreed three rent reviews at Millennium Park Naas, Block A Waterford and Blackwater House Mallow, which add a further €80,000 (0.7%) to the Company’s annual rent roll. The new Gateway Three lease will add an additional €390,000 to the existing rent roll from 1 January 2021.
Together with the new lease at Cork Airport and combined with four separate break notices that expired so far in 2021 (in Ashtown Gate, Millennium Park & Gateway One) this activity has increased Yew Grove’s pro forma portfolio weighted average unexpired lease term to expiry and break to 7.7 and 4.8 years respectively from 7.1 and 4.1 years.
Jonathan Laredo, Chief Executive of Yew Grove, commented:
“We are delighted that the ESB have decided to stay in East Wall Road and look forward to working with them in the future. I am pleased that we continue to make progress in managing our estate and have now completed 14 asset management projects since the first lock down in 2020. It is also very pleasing that our tenants continue to express confidence in their future in our offices.”
