Last checked at 21 Dec 2015 07:00
Real Estate Investors plc
("REI" or the "Company" or the "Group")
Property Acquisitions
Real Estate Investors plc (AIM: RLE) the Birmingham based property group and UK listed Real Estate Investment Trust, is pleased to confirm the acquisition of investment properties in Wolverhampton and Coventry for a total consideration of £7.125 million in cash, producing total rental income of £730,362 p.a. at a net initial yield of 9.8%.
The investment properties acquired are as follows:
Wolverhampton - acquired from the Irish NAMA (National Asset Management Agency) a prime retail unit in Wolverhampton City centre, producing £276,200 p.a. and let to River Island Clothing Ltd, with a net initial yield of 13.05%. The property was previously acquired for £5.4 million in August 2004. The lease is due to expire in March 2016 and REI is in discussions with the occupier to renew the lease.
Coventry - a multi-let office scheme, with a weighted average annual unexpired lease term (WAULT) to expiry of 11.33 years and 6.98 years to break, let to Yazaki Europe (major supplier to Land Rover), Chubb, Minitab and Saint-Gobain Building Distribution, producing £454,162 p.a., which incorporates a parcel of land for expansion, at a net initial yield of 8.37%.
Paul Bassi, CEO of REI, commented: "These properties are excellent additions to our growing portfolio and both acquisitions provide immediate income and asset management opportunities that have the potential to provide capital growth.
"These acquisitions contribute to a record annual contracted income that will provide the foundation for further dividend growth, in line with the Company's stated progressive dividend policy.
"We have enjoyed an excellent year in which we will have secured record gross property assets. Our market reputation, available capital and banking facilities, will allow the Company to capitalise on market opportunities in 2016."
Ends.
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 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.