Yew Grove REIT has agreed a deal to buy Unit 2600 at Cork Airport Business Park for €7.5m, its first investment in the city.
The company, which floated on Euronext Dublin in June of last year, is focused on investing in commercial properties outside of Dublin's central business district.
Yew Grove said the €7.5m acquisition price represents a net initial yield of 7.85% after accounting for purchase costs.
Unit 2600, a two storey, 40,953 square ft office block was refurbished in 2015 and includes a 163-space car park. It is tenanted by Clearstream Global Securities Services, a subsidiary of Deutsche Borse.
The company also said today that it has completed the development of the car park on the IDA Athlone Business and Technology Park for its tenant, KCI Manufacturing.
The car park was completed ahead of schedule, on budget and is subject to a new lease.
Yew Grove said that when the Cork investment is completed and along with an acquisition in Waterford announced earlier this month, its portfolio has grown to 18 properties totalling in excess of 550,000 square feet and generating an annualised rent roll of over €7.35m.
Yew Grove CEO Jonathan Laredo said the company has successfully invested the capital available to it well within the 12 month time horizon set out at its IPO, acquiring a portfolio with strong tenant covenants and very strong occupancy.
"We believe we are well positioned to grow this portfolio, both through further acquisitions and through asset management opportunities within the existing properties, with the aim of generating attractive returns for our shareholders," Mr Laredo said.