Last checked at 11 May 2016 07:00
11 May 2016
Real Estate Investors plc
("REI" or the "Company")
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 two additional investment properties in Telford and Nottingham for a total consideration of £5.135m, producing a combined rental income of £506,710 per annum and a net initial yield of 9.26%.
The investment properties acquired are as follows:
Titan House, Euston Park, Telford - acquired from receivers. The building is situated on a modern business park, adjacent to Telford Central Station and Junction 5 of the M54. Titan House comprises 33,166 sq ft of modern office accommodation over 4 floors and 103 car parking spaces. The property is let to Hewlett Packard Enterprise Service UK Ltd with 4.5 years remaining and a current rental income of £270,000 p.a. The purchase price reflects a net initial yield of 9.91% and a low capital value rate of £83 per square foot. Whilst the property is fully occupied, the tenant currently benefits from a rent free period over the entire first floor, which offers good prospects for rental improvement.
Commodore Court, Nuthall Road, Nottingham - acquired from a private property company. The property comprises a prominent mixed use development, situated on a busy arterial route in Nottingham. The building incorporates three fully occupied retail units, occupied by Sainsbury's Supermarkets Limited, Banardos and Bathstore Limited, with a weighted average annual unexpired lease term (WAULT) to expiry of 11.30 years and 5.27 years to break options. The property produces a rental income of £216,710 per annum and the purchase price reflects a net initial yield of 8.49%.
Paul Bassi, CEO of REI, commented: "We have taken the opportunity to acquire additional criteria compliant assets during a period of uncertainty created by the European vote. We have further assets under offer and we are confident of achieving our contracted rental income and progressive dividend objectives. Total acquisitions in 2016 to date are £15.58m and our contracted rental income is now £13.40m, up 12.60% since year end.
Additionally, from within our existing portfolio, we have in excess of £500,000 of potential rental income from agreed lettings which are progressing through our legal pipeline.
We remain on course to establish a portfolio under management in excess of £200m in the short term".
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 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.