PAUL BASSI’S Real Estate Investors plc has bought a West Bromwich office block for £3.1m in cash.
The West Midlands based property group said today it had has exchanged contracts to acquire Kingston House for £3.1m in cash, representing a yield in excess of 11%.
The property is currently fully let and is producing rental income of approximately £365,000 per annum, said REI.
The principal tenant is Sandwell Primary Care Trust, which pays rent of £250,000 per annum, expiring in July 2019.
Mr Bassi said: “We believe that this latest acquisition is an excellent addition to our rapidly growing portfolio of income generating properties.”
The group has also received detailed planning consent for eight three-bedroom semi detached homes at its recently acquired former public house, Hill Tavern, in Dudley.
It takes REI’s total residential plots to more than 40, many of which are former public houses.
Mr Bassi said: “We will continue to acquire opportunistic residential sites that we believe represent real value to REI, giving us the potential to either resell for healthy profits or develop the sites for retention, providing REI with favourable yields and rental.”
In September, REI reported that it had made a pre-tax loss of £1.6m as rentail incomes fell, but it continued to develop its portfolio, including Cathedral Place in Birmingham.
Don’t miss our weekly property news email every Wednesday: click here
Click here to sign up to receive our new South West business news...
