Investors pay €3.2m for Dublin industrial units – Irish Independent, 19 January 2017

Irish-based investors Yew Tree Commercial Property Fund have paid €3.21m for two units at Airways Industrial Estate.

The sale of units 7 and 8 was handled by joint agents TWM and Cushman & Wakefield on behalf of receivers Kieran Wallace of KPMG and Stephen Tennant of Grant Thornton. The transaction was completed shortly before Christmas.

Ollie Lyons of TWM said there had been strong interest in the investment, reflecting the recovery in the industrial market and the increasing weight of money looking at the sector.

In acquiring the units at Airways Industrial Estate, the buyers will benefit from a nine-year income stream from Essentra Packaging Ireland Limited before a break option in the tenth year of the lease. The nine-year term certainty and 8.95pc initial yield are understood to have been the main incentives for the purchaser, Yew Tree Commercial Property Fund.

Essentra occupies both units, which extend to 8,172 sq m (87,969 sq ft) on two 15-year FRI leases with break options in year 10. Lease commencement for Unit 7 is July 1 2015 while Unit 8 is February 1 2016. The rent in years one to four is €300,000 per annum, which increases to €320,000 per annum in year five for both properties. There are open market rent reviews every five years with the current passing rent equating to €3.41 per sq ft. Given the current upward pressure on rents, the purchaser may benefit from reversionary potential at the next rent review in 2020.

The buyer is a sub fund of Yew Tree Investment Fund Plc, an investment company with variable capital authorised by the Central Bank of Ireland. The fund aims to generate income and to maximise the return from investment primarily in Irish property and/or property-related assets.

Yew Tree has been active in the Irish investment market since its establishment in 2014. It has other investments in west Dublin, Co. Kildare, Co. Louth, Co. Laois, Co. Offaly and Co. Kerry.