Bank lending and economic growth fuels confidence for REI
PROPRTY group Real Estate Investors has said it expects further growth during 2013 following an improvement in bank lending and a healthy pick-up in interest for regional property assets.
In a review of its 2012 business, the AIM-listed group said the previous 12 months had seen it pay out an inaugural dividend and the board said its intention was to implement a progressive dividend payment to shareholders.
Contracted rental income at year-end rose to £6,653,014, an increase of 11.6%, while group occupancy was said to be at 86.75%.
“During 2012, the company made excellent progress and the directors anticipate further success during 2013” it said in its update.
“There has been a significant improvement in bank lending and appetite for regional property assets from institutions, new funds and the corporate and private sector. The directors believe that statistics for 2012 will show a substantial increase in the aggregate value and number of investment property transactions having taken place for the West Midlands region.”
It said an improvement in the regional economy, fuelled by growth from the likes of Jaguar Land Rover had had a positive impact on confidence levels.
“Letting enquiries and viewing across the company’s portfolio, and more generally, have risen significantly, driven by lease events and businesses growing and expanding. The company remains well positioned with cash and excellent banking support to capitalise on opportunities that meet its criteria,” it said.
