6 December 2010
Real Estate Investors plc
(“REI” or “the Company” or “the Group”)
Real Estate Investors plc (AIM:RLE), the West Midlands based property group, announces that it has unconditionally exchanged contracts to acquire a retail parade in a prime location in Rugeley town centre in Staffordshire.
The purchase price is £900,000 with an initial rental income of £75,250 per annum and an estimated rental value (“ERV”) of £82,250.
The property is mainly let to two national multiple retailers, W H Smith (expiring 23 August 2020 and currently £42,500 per annum) and Claire’s Accessories (currently £19,250 per annum) representing £61,750 per annum. The remainder is let to local operators.
REI also has a number of other sales, lettings and acquisitions which the directors are optimistic will be secured for the year end.
Real Estate Investors PLC
+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. As at 31 December 2009, its portfolio and inventories were valued at £55 million
5. Further information on REI can be found at www.reiplc.com