Last checked at 2 Nov 2015 07:00
Real Estate Investors plc
("REI" or the "Company" or the "Group")
£22.23m of Property Acquisitions Complement Core Portfolio
REI on Track to Deliver £200m Midlands Property Portfolio
Real Estate Investors Plc (AIM: RLE), the Birmingham based property group and UK listed Real Estate Investment Trust, is pleased to announce that it has acquired 3 investment properties for an aggregate cash consideration of £22.23 million.
The acquisitions provide a net initial yield of 8.22% with a weighted average unexpired lease term ('WAULT') of 8.49 years, in line with the Group's investment strategy to acquire properties which can deliver both attractive yields and capital growth. The properties produce a total annual rental income of £1,932,995 and provide a number of asset management opportunities including rent reviews, lease renewals and planning consent.
Tenants at the newly acquired properties include:
Oldbury, Sandwell - fully let to NPower
Kingswinford, Dudley - fully let to The Midcounties Co-operative Society Ltd
Tunstall, Stoke on Trent - Matalan Retail Ltd, Argos Ltd, Next Group Plc, Shoezone Ltd and Pizza Hut UK Ltd.
Additionally, REI has also sold Arden House in Acocks Green, a vacant 20,000 sq ft office building, for a cash consideration of £760,000, a substantial increase above acquisition cost. The proceeds of the disposal will be used for further acquisitions in due course and for the Company's general working capital purposes.
Paul Bassi, Chief Executive, commenting, said:
"These latest acquisitions provide a number of asset management opportunities and generate quality rental income that will support our progressive dividend policy."
"We continue to benefit from a vibrant Midlands economy and a much improved occupier market, against a backdrop of strong valuations for occupied investment property. Prime Birmingham City centre has seen significant yield compression and we are beginning to see similar pressure on property values throughout the region, in particular in prime locations in town centres and well let modern office schemes."
"Our acquisition pipeline remains strong and our market reputation and ability to transact expediently in respect of criteria compliant opportunities ensures we remain on track to deliver a £200 million property portfolio in the Midlands."
Ends.
Enquiries: | |
Real Estate Investors PLC Paul Bassi | +44 (0)121 212 3446 |
Smith & Williamson Corporate Finance Limited Azhic Basirov/David Jones | +44 (0)20 7131 4000 |
Liberum Jamie Richards/Tom Fyson | +44 (0)20 3100 2000 |
Gable Communications Limited John Bick | +44 (0)20 7193 7463 +44 (0)7872 061007 rei@gablecommunications.com |
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 1 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.