REI secures ‘excellent addition’ to expanding portfolio
A WEST MIDLANDS property entrepreneur has finalised the deal on “an excellent addition” to an expanding portfolio.
As announced to the City this morning, Paul Bassi, founder and chief executive of Real Estate Investors, has exchanged contracts on an office development in West Bromwich for £3.1m.
Kingston House is the latest in a continuing line of purchases for Mr Bassi’s company, this time from Hertfordshire-based JLG Investments.
In addition, REI has also announced it has received detailed planning consent for eight three-bedroom, semi-detached homes at the former Hill Tavern pub, in Dudley, which it recently bought.
This takes the firm’s residential plots to over 40 from former public house development sites.
Mr Bassi said: “We believe that this latest acquisition is an excellent addition to our rapidly growing portfolio of income generating properties.
“We are still open for business and very keen to buy in the West Midlands. REI has the benefit of both existing cash resources and long standing banking relationships.
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“We are actively seeking residential, retail and office opportunities within the West Midlands.
“We will continue to acquire opportunistic residential sites that we believe represent real value to REI, giving us the potential either to resell for healthy profits or develop the sites for retention, providing REI with favourable yields and rental.”
Kingston House is 42,000 sq ft, fully let and produces rental income of approximately £365,000 pa.
The principal tenant is Sandwell Primary Care Trust with a lease expiring in July 2019.
Last year, REI declared it was prepared to spend up to £100m in 2010/11.
Agents DTZ in Birmingham represented the vendors and Bond Wolfe acted for REI.
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