Real Estate Investors ‘on track’ despite market uncertainties

Real Estate Investors (REI) says it’s on track with its disposal strategy, despite challenging conditions in the investment market.

The Midlands-focused commercial property investor has completed or exchanged £11.9m in assets and repaid £7.3m in debt so far this year, reducing total debt from £54.4m at the end of 2023 to £47.1m,

Deals have reflected a 4.1% increase in value compared to December 2023 valuations.

REI’s annual rental income is currently at £10m, down from £10.9m. New lettings however, have added £760k to this figure, with an additional £150k expected from future lettings.

Occupancy is at 84%, with REI anticipating improvements as leasing and sales of vacant properties continue.

Paul Bassi, CEO of REI said: “Although the investment market remains challenging, we have completed or exchanged £11.9 million in assets and repaid £7.3 million in debt. Sentiment so far in the second half of the year has been positive with business confidence in our region growing by 15 points since the result of the election in July.

“We believe the recent 0.25% interest rate reduction, announced by the Bank of England last week, will further enhance confidence and support a return to more normalised investment market conditions that will allow us to start to sell our larger assets, utilising funds more rapidly to eliminate our debt to then return surplus capital to our shareholders.”