11 November 2013
Real Estate Investors plc
(“REI” or the “Company”)
Real Estate Investors Plc (RLE), the West Midlands based property group, confirms that it has let 21,895 sq. ft. at Guardian House in West Bromwich town centre (previously occupied by Challinors Solicitors who went into administration in August 2013) for a term of 10 years, 6 months, with a 5 year and 6 month break, to Sandwell Inspired Partnership Services at a commencing rent of £251,793 p.a.. This is equivalent to £11.50 per sq. foot. Sandwell Inspired Partnership Services is a “not for profit co-operative” formed by the local council and various local schools.
The Company has also unconditionally exchanged contracts to acquire 6-16 Bridge Street, Walsall for the sum of £500,000. The property is let to tenants including Ladbrokes, Hambro Countrywide and is a prominent town centre parade producing a rental income of £91,700 p.a.. This property is directly opposite an existing REI retail parade and offers considerable asset management opportunities to add value.
More generally, occupier demand has increased and incentives are much reduced. The most significant change is the appetite from funds and investors to acquire property in the Midlands region. The Company expects to announce further sales, lettings and acquisitions before the year end.
The Company is in consultation with its advisers in respect of converting the Company’s status to a Real Estate Investment Trust (REIT).
Paul Bassi, Chief Executive commented:
“Guardian House is an excellent letting that will have a positive impact on our valuations and will most probably recover any loss in valuation absorbed at the half year on this asset.”
For further information:
Real Estate Investors
+44 (0)121 265 6400
Smith & Williamson Corporate Finance Limited
Azhic Basirov / Siobhan Sergeant
+44 (0)20 7131 4000
Chris Bowman / Richard Bootle
+44 (0)20 3100 2000
Notes to Editors
REI is an AIM listed property investment company with a £76.8m (as at 30 June 2013) commercial and residential portfolio principally in the West Midlands and central England.
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.
REI is led by respected property investor Paul Bassi CBE, who has over 30 years of property experience in the West Midlands. Mr Bassi is also founder and non-executive chairman of Bond Wolfe and non-executive chairman of CP Bigwood Chartered Surveyors. REI was admitted to trading on AIM in June 2004. Further information on REI can be found at www.reiplc.com.