REI loads war chest with new £30m banking deal

PROPERTY investment business Real Estate Investors (REI) has agreed a new £30m, five year term loan facility with Royal Bank of Scotland.

The firm, one of the most active investors in the central Birmingham commercial property market, agreed the deal on an interest only basis at a margin of 1.75% over LIBOR, secured against part of the company’s unencumbered property portfolio.

REI said the funding stream will help it to grow its property portfolio. 

In a trading update to the London Stock Exchange, Birmingham-based REI said it had seen a strong increase in contracted rents in 2015.

And it announced a announced a letting at Peat House in Leicester city centre.  Bellrock FM has leased 21,715 sq ft on a new ten year lease at £282,295 net p.a. The building is now almost fully let producing £494,130 p.a.
 
REI revealed that during 2015 contracted rents rose to £11.9m at the year end, up 54.5% (2014: £7.7m).
 
Paul Bassi, the firm’s CEO, said “Our contracted rents have seen excellent growth during 2015, and with our acquisition pipeline and improvement in occupier demand, we anticipate further growth during 2016, which will firmly support our commitment to continue to grow our dividend payment.
 
“The new bank facilities, together with existing cash, provide the capital to secure properties from our known pipeline, and grow our portfolio to in excess of £200m during 2016, subject to opportunistic sales.”

NEXT STORY: Paragon boosted by buy to let mortgages surge.  

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