12 Jan 2011 07:00
12 January 2011
Real Estate Investors plc
("REI" or "the Company" or "the Group")
ACQUISITION
Real Estate Investors plc (AIM:RLE), the West Midlands based property group, is pleased to announce that it is has exchanged contracts (subject to local searches) to acquire Kingston House, West Bromwich for £3.1 million in cash, representing a yield in excess of 11%.
The property is currently fully let and is producing rental income of approximately £365,000 per annum. The principal tenant is Sandwell Primary Care Trust (Secretary of State), representing a rental of £250,000 per annum, expiring in July 2019.
Commenting on the acquisition, Paul Bassi, Chief Executive of REI, said, "We believe that this latest acquisition is an excellent addition to our rapidly growing portfolio of income generating properties."
Enquiries:
Real Estate Investors PLC Paul Bassi
| +44 (0)121 265 6400 |
Smith & Williamson Corporate Finance Limited Azhic Basirov / Siobhan Sergeant
| +44 (0)20 7131 4000 |
Liberum Capital Limited Chris Bowman / Richard Bootle
| +44 (0)20 3100 2000 |
Notes to Editors
1. REI is an AIM listed property investment company specialising in commercial and residential property principally in the West Midlands and central England.
2. REI is focused on delivering shareholder value through returns generated from strong yields and capital enhancements. This is achieved by targeting investments in orphaned, distressed, part-let and underperforming commercial and residential property assets.
3. REI is led by respected property investor Paul Bassi CBE, who has over 25 years of property experience in the West Midlands. Mr Bassi is also founder and chairman of Bond Wolfe and chairman of Bigwood Chartered Surveyors.
4. REI was admitted to trading on AIM in June 2004 and has subsequently raised a total of £35 million in further equity issues as well as debt financing to grow its property portfolio.
5. Further information on REI can be found at www.reiplc.com.
REI (RLE)