Property investor goes Christmas shopping in Bromsgrove
A RUN of shops on Bromsgrove’s High Street has been bought by Real Estate Investors (REI) for £1.275m.
REI, the stock market-listed property group, has paid cash for 62/68 High Street, which is currently occupied by Boots Opticians, Thorntons, Smart Ideas and Lorita’s Bakehouse.
The 6,000 sq ft property generates £114,000 rent per year and the deal represents a net initial yield of 8.45%.
Paul Bassi, REI chief executive, said: “This is an excellent addition to our portfolio, offering scope to add further value from lease extensions and re-letting of the upper parts and unused ancillary space, which will provide us with capital growth and a strong running yield.”
The property has a weighted average unexpired lease term of seven years to expiry and three years to breaks.
Mr Bassi, who remained bullish throughout the run-up to the referendum, expects further sales before Christmas in “an improved regional investment market”.
He added: “We have several ongoing sales and acquisitions in our legal pipeline, with a healthy addition of new lettings and lease renewals from within the existing portfolio, which will enhance rental income and our average lease lengths.
“In addition, the company has significant additional capital from rental income, property sales and bank facilities to continue to grow the portfolio and generate additional rental income to support our dividend growth, while retaining a portfolio in the region of £200m.”
