£13 million of Acquisitions

13th September 2011
RNS Number : 0985O
Real Estate Investors PLC
13 September 2011
 

13 September 2011

 

Real Estate Investors plc

(“REI” or the “Company”)

 

£13 MILLION OF ACQUISITIONS

 Rent Roll Up 50% in Nine Months

 

Real Estate Investors plc (AIM: RLE), the West Midlands based property group, announces that it has exchanged contracts to acquire three properties in the Midlands for a total of £13.05 million, in cash. The properties produce a total current rent of £1.55 million, representing an initial yield of 11.84%. These acquisitions increase the Company’s total annualised rent roll to £6.11 million, a 50% increase since 1 January 2011.

 

The properties are:

 

Southgate Retail Park, Derby – a 53,202 sq. ft., eight unit retail park currently producing £412,074 per annum from tenants including Lidl, Gym 4 All, Dreams and Deeley Properties. There are two vacant units totalling 10,838 sq. ft. The property was acquired for £4.8 million from TAP Property.

 

Peat House, 1 Waterloo Way, Leicester – a prime city centre 43,437 sq. ft., five floor office building let to KPMG, at £510,225 per annum on a lease to June 2015. The property was acquired for £4.4 million from Aviva.

 

Gateway House, 50-53 High St, Birmingham – a 27,071 sq. ft. retail and office building, next to Marks & Spencer and near to the Bullring retail centre, producing £623,398 per annum from tenants including Arcadia, Randstad and Heart of England Training, National Shelter and Brightsun. One retail unit of 4,069 sq. ft. is vacant. The property was acquired for £3.85 million, again from Aviva.

 

 

Paul Bassi, Chief Executive of REI, said: “These properties are prime, high quality ex-institutional assets that provide good rental income and significant scope for asset management initiatives that will enhance capital values.

 

“These new acquisitions take the value of our portfolio to in excess of £75 million and, with existing cash and bank facilities, we remain on track to achieve a portfolio of £100 million within the next six to twelve months.” 

 

 

 

For further information:

 

Real Estate Investors 

Paul Bassi

 

+44 (0)121 265 6400

 

Smith & Williamson Corporate Finance Limited

Azhic Basirov / Siobhan Sergeant

 

 

+44 (0)20 7131 4000

Liberum Capital 

Chris Bowman / Richard Bootle

 

+44 (0)20 3100 2000

 

Tavistock Communications

Jeremy Carey / Amy  Walker

 

+44 (0)20 7920 3150

 

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 CP Bigwood Chartered Surveyors.

 

4.      REI was admitted to trading on AIM in June 2004 and has subsequently raised a total of £47 million in further equity issues as well as debt financing to grow its property portfolio.  As at 31 December 2010, its portfolio and inventories were valued at £56 million.

 

5.      Further information on REI can be found at www.reiplc.com.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 

END

 
 

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