Newly incorporated Irish REIT raises €75m on IPO

(stock photo)

Ellie Donnelly

Yew Grove, a newly incorporated Irish Real Estate Investment Trust, has raised €75m on its initial public offering (IPO).

A real estate investment trust (REIT) is a company that owns, operates or finances income-producing real estate.

Yew Grove said that application has been made for the Admission to trading of the company's ordinary shares of €0.01 each in the capital of the company ("Ordinary Shares") to both the AIM market of London Stock Exchange and the Enterprise Securities Market of Euronext Dublin (formerly the Irish Stock Exchange).

Admission to the stock exchanges is expected to occur on Friday.

The company has agreed to acquire a seed portfolio with effect from the Admission through the acquisition of the issued share capital of Yew Tree Investment Fund.

The seed portfolio comprises ten properties, valued, in aggregate, at approximately €25.9m.

In a statement to the Irish Stock Exchange the company said that its investment objective is to provide shareholders with high, good quality income from a portfolio of property comprising well-tenanted commercial real estate in "strategic centres" around Ireland.

This will primarily include office and industrial assets let to Irish Government entities, State Bodies, IDA Ireland-supported and other foreign direct investment companies, as well as larger corporates located in Dublin City (outside of city centre), in IDA Ireland Business and Technology Parks and in major regional hubs, especially those identified under Project Ireland 2040, the company said.

Yew Grove said it has set a target dividend of €0.07 per ordinary share for the company's first full financial year (which will run from 1 January 2019 to 31 December 2019).

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