Last checked at 11 Dec 2017 07:00
Real Estate Investors Plc
("REI" or the "Company" or the "Group")
Property Disposal and Letting Update
Real Estate Investors Plc (AIM:RLE), the Midlands focused property group and UK listed Real Estate Investment Trust ('REIT'), is pleased to announce the sale of 24 Bennetts Hill, Birmingham for a cash consideration of £4.00 million, which is a premium to book valuation and represents a 5.90% net initial yield. The investment property was acquired by the Company in December 2014 for £2.06 million.
REI has also completed a major letting of 14,291 square feet in Peat House, Leicester, a prime city centre office building. The building is now fully occupied and producing a total rental income of £573,466 per annum with occupiers including everythingbranded.co.uk, Bellrock FM, Innes England and KPMG.
Paul Bassi, CEO of REI, commented: "We are delighted to complete this sale having added significant value through asset management, and our Peat House asset is now fully let which completes an excellent year of activity where we have been active as a buyer, seller and transacted significant lettings. We have achieved a record occupancy throughout the portfolio of 95%, which will provide the foundation for further dividend growth in line with the Company's stated progressive dividend policy.
"Our market reputation, available capital and banking facilities, will allow the Company to capitalise on market opportunities in 2018 and continue to grow our property portfolio."
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/Ben Roberts
| +44 (0)20 3100 2000 |
Gable Communications Limited John Bick | +44 (0)20 7193 7463 +44 (0)7872 061 007 |
About Real Estate Investors plc
Real Estate Investors Plc is a publicly quoted property investment company with a portfolio of over 1,400,000 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 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.