Last checked at 21 May 2014 07:00
21 May 2014
Real Estate Investors Plc
("Real Estate Investors" or "the Company")
Good Progress on Acquisitions and New Lettings
Real Estate Investors (AIM: RLE.L), the West Midlands based property investment company, announces that it has made the following acquisitions:
· City Gate House, Leicester for the sum of £1.8 million. The property is let to the Secretary of State until August 2024, with a tenant break in April 2021. The rental income is £157,500 p.a. (unconditionally exchanged - completion due today).
· High Street, Bromsgrove, Worcestershire for the sum of £500,000. This prime retail unit is let to WH Smiths until June 2017 at a passing rent of £52,000 p.a.
· Former Sandwell College campus in Smethwick, Sandwell for an undisclosed sum. The site comprises of approximately 6 acres and is a prime land site zoned for residential.
Additionally, in 2014 to date, the Company secured new lettings totalling £300,000 rent p.a. New tenants include: HSBC; WH Smiths; Royal College of Surgeons; Clark Brookes Solicitors; West Bromwich Building Society; Secretary of State and Duncan Lewis solicitors.
Paul Bassi, Chief Executive of REI, commented:
"These latest acquisitions bring our spend to £8 million plus so far this year. We have a number of further acquisitions in our pipeline that should result in over £20 million of investments in a range of opportunities that meet our investment criteria.
"The commercial property investment market place is now substantially improved and the residential market across the region, in particular the West Midlands, is extremely buoyant and we expect this to continue for the foreseeable future. It is notable that we have received expressions of interest for a number of our properties that were acquired during the downturn, at levels above our book value and we will consider disposals either individually or as a portfolio.
"Land prices are now significantly higher and we are seeing aggressive and competitive purchasers entering the market place for residential development and conversion opportunities. In summary, we are making excellent progress across our portfolio and remain on course to maintain our progressive dividend policy."
Enquiries:
Real Estate Investors Plc Paul Bassi
|
T: +44 (0)121 265 6400 |
Smith & Williamson Corporate Finance Limited Azhic Basirov / Oliver Cummings
|
T: +44 (0)20 7131 4000 |
Liberum Capital Chris Bowman / Jamie Richards
|
T: +44 (0)20 3100 2000 |
Gable Communications Limited John Bick / Justine James
| T: +44 (0)20 7193 7463 M: +44 (0)7872 061007 E: reiplc@gablecommunications.com |
Notes to Editors
Real Estate Investors is an AIM listed property investment company with a £75.2m (as at 31 Dec 2013) commercial and residential portfolio principally in the West Midlands and central England.
Real Estate Investors is focused on delivering shareholder value through returns generated from strong yields and capital enhancements. This is achieved by targeting investments in orphaned, distressed, part-let and underperforming commercial and residential property assets.
Real Estate Investors is led by respected property investor Paul Bassi CBE, who has over 30 years of property experience in the West Midlands. Mr Bassi is also founder and non-executive chairman of Bond Wolfe and non-executive chairman of CP Bigwood Chartered Surveyors. Real Estate Investors was admitted to trading on AIM in June 2004. Further information on Real Estate Investors can be found at www.reiplc.com.