REI Raises Over £5.5m from High Street property sales
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Real Estate Investors has raised over £5.5m with the sale of two High Street commercial properties in Bearwood in Birmingham and Pontypool, at levels “significantly above” historic pre-pandemic book values.
Due to the strong trading performance of its Bearwood store, Aldi has purchased the freehold of the property for £5.35mm, representing a yield of 5.26%. The sale price reflects a 32% uplift in value against the December 2019 year end valuation of £4.05m.
In Pontypool, REI has sold 124-125 Osborne Road, Pontypool, for £180,000, representing a 38% increase above the pre-pandemic valuation of December 2019. The property is let to Lloyds Pharmacy and the initial yield is 8.16%.
Paul Bassi, chief executive of REI, said: “The funds raised will be used to repay debt with a view to reducing net gearing levels and securing value adding acquisitions to enhance portfolio capital and income growth.
“This will, in turn, support REI’s ongoing progressive dividend policy.”
He added that, located in the heart of the Midlands region, the business remains well positioned to benefit from regional initiatives and events, in particular HS2 and the impending Commonwealth Games in 2022.