REI Regulatory News (RLE)

9 March 2016

Real Estate Investors PLC

('REI' or the 'Company' or the 'Group')

Proposed acquisition of West Plaza

Real Estate Investors PLC (AIM: RLE), the Birmingham based property group and AIM listed Real Estate Investment Trust, announces that it has exchanged contracts to acquire ("the Acquisition") the freehold of West Plaza, 144 High Street, West Bromwich B70 6JJ ("West Plaza" or "the Property") from Bond Wolfe Estates Limited ("BWE") for a consideration of £8.0 million, to be paid in cash from the Company's existing resources and facilities (no debt is being assumed by the Company under the Acquisition). The Property has been valued by an independent professional valuer, GBR Phoenix Beard Limited ("GBR"), at £8.1 million as at 5 February 2016.

West Plaza is an eleven storey, 87,929 sq ft building close to Junction 1 of the M5 motorway. It adjoins Metro Court, a 26,000 sq ft office building which is already owned by the Company (acquired in December 2008). West Plaza's current contracted annual rent is £656,050 and the ERV (estimated rental value) is estimated by GBR at £712,918, although the Company's internal ERV estimate is higher based on its assessment of the Property and the market. The largest single tenant is Premier Inn (part of Whitbread PLC) with an 85 bedroom hotel occupying 6 floors (comprising 48,551 sq ft) at a current annual rent of £310,000 (rent review due in April 2016; expiry date April 2031 with break in April 2021). The 8th floor is let to Bond Wolfe (a partnership in which Paul Bassi (the Company's Chief Executive) is the principal equity holder); this lease covers 8,555 sq ft, is at an annual rent of £112,500 and expires in September 2020. The WAULT (weighted average unexpired lease term) of the Property is 10.6 years (4.7 years to break options) and occupancy is currently 91.6% (the vacant space is currently under offer). The Acquisition is expected to enhance REI's net income and the Company believes that there is potential, in the longer term, for residential development of the Property. The Company also believes there may be additional marriage value from combining the Property with Metro Court, the adjoining property it owns.

Mr Bassi, who has a 65 per cent. equity interest in BWE, was informed by the other shareholders in BWE that they wished to realise their investment in West Plaza (which was acquired by BWE in October 2003). Mr Bassi intends to re-invest part of his share of the estimated net proceeds from the sale of the Property in buying shares in the Company in the market (subject to the normal AIM close period rules), in addition to the 375,000 shares he purchased in December 2015. The Company's directors (with the exception of Paul Bassi who is involved in the transaction) consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Due to Mr Bassi's shareholding in BWE, the Acquisition is required to be approved by REI shareholders at a General Meeting of the Company pursuant to s190 of the Companies Act 2006. The Company is convening a General Meeting to be held at the Company's offices at 2nd Floor, 75/77 Colmore Row, Birmingham B3 2AP at 10:00am on 6 April 2016 to seek approval for the Acquisition. A circular containing notice of the General Meeting will be posted to shareholders and a copy will shortly be made available on the Company's website www.reiplc.com.

ENDS

About Real Estate Investors PLC

Real Estate Investors PLC is a publicly quoted property investment company with a portfolio of over 1,000,000 sq ft of commercial property managed by a highly experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.

The Company's strategy is to invest in well located, real estate assets in the established and proven markets of central Birmingham and the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings. The portfolio has no material reliance on a single asset or occupier.

On 1st January 2015, the Company converted to a Real Estate Investment Trust (REIT). Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities.

The Company aims to deliver capital growth and income enhancement from its assets with the view to implementing a progressive dividend policy. Further information on the Company can be found at www.reiplc.com.