Bassi on a roll as REI bags former Allied Carpets store
PROPERTY group Real Estate Investors has turned to its West Bromwich heartland for its latest deal.
The company, run by entrepreneur Paul Bassi, has unconditionally exchanged contracts to acquire a part-vacant property at 294-310 High Street in a deal worth £475,000.
The property, a former Allied Carpets store with offices above, has an Estimated Rental Value (ERV) of £150,000 pa, and currently produces £39,000 pa. The vendor originally paid £1.6m for the property back in May 2006.
The deal reflects the company’s strategy of expanding its portfolio without paying over the odds. It is the second deal completed by REI this month following its purchase of two office buildings in Birmingham from receivers for £1.69m.
The property group acquired the buildings at Apex, at the corner of Harborne Road and Calthorpe Road, Edgbaston, and had paid cash for the purchase.
The buildings cost the previous owner nearly three times that amount when it purchased them seven years’ ago.
The Birmingham properties are let to Lombard North Central (NatWest) and Royal London Life and produce £353,502 a year on leases expiring in December 2015, representing an initial yield of 20%.
The properties were acquired from the receivers acting for the mortgagees Capita Asset Services (London) Ltd. The vendors acquired these properties in March 2005 for a sum of £4.52m.
