Dublin-listed property investor Yew Grove REIT has bought three office properties in the IDA Business Park in Letterkenny, Co Donegal for a total price of €16m.

The company said this represented a net initial yield of 8.35%, after accounting for all purchase costs.

The buildings are tenanted by Optum Operations (Ireland) Ltd under 10 year leases. 

The leases are guaranteed by Optum's parent, the United Health Group, the largest healthcare business globally and one of the largest corporations by revenue in the US. 

Yew Grove also said today that it has now successfully deployed €76m since its IPO in June of this year. 

In a trading update, the company said its revolving credit facility of €19.9m means that it has available resources of €16m to acquire further properties in the near-term. 

The pipeline of potential acquisitions remains significant, it added.

Yew Grove's CEO Jonathan Laredo said that in the short period since its IPO, the company has successfully deployed the capital raised and has a strong pipeline of potential acquisitions of well tenanted, well covenanted and high yielding commercial real estate.  

"The high quality rental income stream positions us to pay a maiden dividend for 2018 and retain guidance for a significant dividend increase in 2019," the CEO said. 

"We look forward to 2019 and the continued delivery against our stated objectives," he added.