Last checked at 21 Jul 2010 12:15
21 July 2010
Real Estate Investors plc
("REI" or "the Company" or "the Group")
INVESTMENT UPDATE
Real Estate Investors plc (AIM:RLE), the West Midlands based property group, announces the following information in relation to its recent investing activities.
Investments
The Company is pleased to confirm that, on the 19 July 2010, it unconditionally exchanged contracts to acquire the property at 75-77 Colmore Row, Birmingham for £4.5 million in cash. The property comprises a prime listed office building in the heart of the city centre, comprising 18,676 sq ft over 5 floors, and is fully let to PricewaterhouseCoopers LLP until 24 December 2013, producing annual rental income of approximately £400,000. The Directors believe that the property provides significant asset management scope as the tenant has vacated and the property is currently sublet. The Company anticipates completing the acquisition on or around 28 July 2010.
The Company also recently acquired two sites for a total of £335,000. These sites have the potential to be redesignated as residential land and they will be sold once planning consent is obtained. The Directors believe that these properties could achieve a significant uplift in value in the event residential planning consent is obtained as demonstrated with the recent sale of The Red Lion Public House, described below.
Disposals
On 14 July 2010, the Company sold The Red Lion Public House, Tividale having obtained outline residential planning consent. The property, which was acquired for £175,000 in November 2009, was sold for £375,000.
Asset management
New rentals for the year to date have resulted in additional contracted rental income of over £400,000 per annum for the Company. The Company is in the process of completing a number of other lettings which have been agreed, subject to contract, which the Directors anticipate should complete in the next few months.
Commenting on the Company's activities, Paul Bassi, Chief Executive, said, "We have significant opportunities in our pipeline and nearly all are from distressed vendors, bank recovery departments or insolvency firms. We anticipate acquiring a number of assets that provide REI with capital value appreciation, strong rental yields and asset management opportunities. We also continue to capitalise on asset management opportunities from our existing portfolio."
Enquiries:
| Real Estate Investors PLC Paul Bassi
| +44 (0)121 265 6400 |
| Smith & Williamson Corporate Finance Limited Azhic Basirov / Siobhan Sergeant
| +44 (0)20 7131 4000 |
| Singer Capital Markets Limited Alan Geeves
| +44 (0)20 3205 7500 |
| Tavistock Communications Jeremy Carey/Amy Walker
| +44 (0)20 7920 3150 |
Notes to Editors
1. REI is an AIM listed property investment company specialising in commercial and residential property principally in the West Midlands and central England
2. REI 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
3. REI is led by respected property investor Paul Bassi CBE, who has over 25 years of property experience in the West Midlands. Mr Bassi is also founder and chairman of Bond Wolfe and chairman of Bigwood Chartered Surveyors
4. REI was admitted to trading on AIM in June 2004 and has subsequently raised a total of £35 million in further equity issues as well as debt financing to grow its property portfolio. As at 31 December 2009, its portfolio and inventories were valued at £55 million
5. Further information on REI can be found at www.reiplc.com