A NEWLY FORMED Irish real estate investment trust (Reit) has become the latest in a line of property firms to list on Ireland’s stock exchange.
Following its initial public offering (IPO) this morning, Yew Grove Reit has raised approximately €75 million, which it will use to build a massive portfolio of commercial property. The company is the fourth Reit to go public in Dublin within the past five years.
An admission for trading on Dublin and London’s junior stock exchanges is expected to take place on Thursday.
In a statement, Yew Grove outlined its plans to go after the lucrative commercial rental market in strategic centres around Ireland.
Yew Grove has already agreed to buy up a portfolio of properties using the funds raised from the IPO. The portfolio consists of 10 properties valued at approximately €25.9 million.
Over the next three years, the directors of the company plan to build a property portfolio worth between €300 million and €500 million.
A report produced by property group Savills last year showed that there is “restricted” availability of prime industrial space in Dublin, which has caused a surge in demand.
The property in Yew Grove’s portfolio will primarily consist of office and industrial space that is let to Irish government bodies, IDA Ireland-supported clients, and larger corporate organisations based in Dublin city.
It will also aim to have properties in regional hubs identified under the Project Ireland 2040 strategy.
The executive management team also noted that the firm is in discussions over the acquisition of five properties with a combined value of €44.3 million.
The founding members of Yew Grove include Michael Gibbons, Charles Peach and Jonathan Laredo, all executives of UK-based asset management firm Peak Capital Partners.
Following the financial crash in 2008, the group set up Yew Tree Investments to snap up Irish property.
In a statement, Yew Grove outlined the experience of its management team and board as a key competitive advantage.
The firm’s management team has over 15 years’ experience in the Irish commercial property market, with the majority of that time specifically focused on office and industrial property outside of central Dublin.
The management team also has a lot of experience in the acquisition, management and disposal of commercial real estate in Ireland.
Yew Grove plans to reduce the development risk it is exposed to by not acquiring property speculatively and will only snap up commercial property once it is let or pre-let.
The company noted that it may possibly forward finance the development of an office or warehouse property if it has secured appropriate assurances that the property will be rented upon completion.
Earlier this year, US hedge fund York Capital announced plans to float its Irish subsidiary Core Industrial REIT on the Irish ESM and UK-based AIM stock exchanges this March.
York Capital’s new property fund was created to invest in Irish-based industrial properties located in the greater Dublin area and repay debt related to its current portfolio.