REI buys trio of properties in £13m spending spree
REAL Estate Investors, the AIM-listed property company founded by Paul Bassi, has announced a trio of cash acquisitions worth £13m across the Midlands.
The properties would produce a total current rent of £1.55m, the Birmingham-based firm said today, and represented an initial yield of 11.84%.
These acquisitions increase the company’s total annual rent roll to £6.11m, a 50% increase since the start of the year.
The first property is Gateway House, at 50 High St, in Birmingham.
The retail and office building is 27,071 sq ft and sits next to Marks & Spencer, producing £623,398 annual rent from tenants including Arcadia, Randstad and Heart of England Training. The property was acquired for £3.85m from Aviva.
The second deal is Southgate Retail Park, in Derby, which comprises eight units totalling 53,202 sq ft.
Current annual rent is just over £412,000 from tenants such as Lidl, Gym 4 All, Dreams and Deeley Properties. The property was acquired for £4.8m from TAP Property.
Making up the triumvirate is Peat House, in Waterloo Way, Leicester.
The five-floor, 43,437 sq ft office complex is let to KPMG at £510,225 per year on a lease which expires in June 2015. The property was acquired for £4.4m, again from Aviva.
REI chief executive Paul Bassi said: “These properties are prime, high quality ex-institutional assets that provide good rental income and significant scope for asset management initiatives that will enhance capital values.
“These new acquisitions take the value of our portfolio to in excess of £75m and, with existing cash and bank facilities, we remain on track to achieve a portfolio of £100m within the next six to 12 months.”
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