Sale of 770-772 Bristol Road South, Northfield
Real Estate Investors Plc, the Birmingham-based property group, has unconditionally exchanged contracts to sell 770-772 Bristol Road South, Northfield, for the sum of £1.425 million.
REI purchased the mixed use development for £1.25 million in cash in early 2014. The property comprises 6,751 sq ft of retail outlets with residential accommodation. The property has been purchased by a private investor. Occupiers include HSBC and West Bromwich Building Society. The sale represents a 7.68 per cent yield.
REI chief executive Paul Bassi said: “Since acquiring the property approximately 12 months ago, our asset management, including selling a flat above for £50,000 at auction, has been completed and we have sold at a level well above our book value and purchase price.”
The sale is the first deal to be announced since REI’s annual report revealed record revenue, profit and dividends in the financial year to December 31, 2014. Revenue was a record for REI, up by 19 per cent to £8 million from £6.7 million in 2013. Profits before tax soared by 21 per cent from £5 million in 2013 to £6 million this year. Dividends have been increased by 50 per cent to 1.5p per share.
Paul Bassi added: “Since then REI has raised a further £45 million and the company has reaffirmed it is an active investor with nearly £50 million of new purchases under offer or in legals.”