Yew Grove REIT has agreed to buy an office block in the IDA Waterford Business and Technology Park for €4m.

The deal for Office Block A is the company's first acquisition in Waterford. 

Yew Grove, which floated on Euronext Dublin in June of last year, is focused on investing in commercial properties outside of Dublin's central business district. 

It said the €4m deal represents a net initial yield of 8.56%, after accounting for all purchase costs.

The building it is buying comprises 36,845 square feet of open plan office space arranged over three storeys and completed to a very high standard.

Its current tenants are Tech Mahindra Business Services - on a 20 year lease with a break in five years - and SE2 Information Services Ireland with a five year lease.
 
"The building has been finished to a high standard, has strong tenants with growing businesses, and provides the company a secure income stream which further enhances the Yew Grove portfolio," commented the company's chief executive Jonathan Laredo said. 

Earlier this week Yew Grove REIT reported a pre-tax profit of €2.3m for the months between April 5 and December 31, 2018.