REI opens war chest for triple swoop in Midlands property market
ACQUISITIVE property group Real Estate Investors (REI) has announced it has made three new purchases – two of them in the West Midlands.
The Birmingham-based company, owned by entrepreneur Paul Bassi, has bought a retail unit in High Street, Bromsgrove, for £500,000. It is let to WH Smith until June 2017 at a passing rent of £52,000 p.a.
It has also purchased the former Sandwell College campus in Smethwick for an undisclosed sum. The site comprises approximately six acres and is described by REI as a prime land site zoned for residential.
In addition REI has bought City Gate House, Leicester, for £1.8m. The property is let to the Government until August 2024, with a tenant break in April 2021. The rental income is £157,500 p.a.
In March REI announced it was raising £20m through a share placing to use for future acquisitions.
REI has also revealed today that in 2014 to date it has secured new lettings totalling £300,000 rent p.a. New tenants include HSBC, WH Smith, Royal College of Surgeons, Clark Brookes Solicitors, West Bromwich Building Society, Secretary of State and Duncan Lewis solicitors.
Bassi, chief executive of REI, said: “These latest acquisitions bring our spend to £8m plus so far this year.
“We have a number of further acquisitions in our pipeline that should result in over £20m of investments in a range of opportunities that meet our investment criteria.
“The commercial property investment market place is now substantially improved and the residential market across the region, in particular the West Midlands, is extremely buoyant and we expect this to continue for the foreseeable future.
“It is notable that we have received expressions of interest for a number of our properties that were acquired during the downturn, at levels above our book value and we will consider disposals either individually or as a portfolio.
“Land prices are now significantly higher and we are seeing aggressive and competitive purchasers entering the market place for residential development and conversion opportunities.”
