REI plans to load up war chest for further acquisitions

ENTREPRENEUR Paul Bassi’s Birmingham-based property group Real Estate Investors is aiming to raise at least £40m on the markets to fund future acquisitions.

The firm which has made a large number of commercial property investments in Birmingham and the wider West Midlands in the last few years is carrying out a share placing on the Alternative Investment Market (AIM).
 
It proposes to place new ordinary shares at a placing price of 60 pence per ordinary share to raise a minimum of £40m.
 
Firm commitments have already been received from institutional investors and certain of the company’s directors to participate in the placing.
 
REI said net proceeds of the placing willbe used to provide additional resources to capitalise on acquisition opportunities in the West Midlands property market.
 
Liberum Capital is acting as sole broker and bookrunner to the placing and Smith & Williamson Corporate Finance as nominated adviser.
 
The placing will be conditional on the approval by shareholders in a general meeting.

Earlier this month, REI posted record revenue and profits for the financial year to December 31, 2014.

Revenue was up by 19% to £8m from £6.7m in 2013 while profits before tax rose by 21% from £5m in 2013 to £6m.