REI on track for £200m portfolio despite selling off South East property

BIRMINGHAM property company Real Estate Investors (REI) has announced it has sold £4m of properties from its non-core portfolio.

This is in addition to the £12m of property sales already announced in 2015.

But REI said it remains on track to grow its portfolio to in excess of £200m in the next six months. 

The firm, run by entrepreneur Paul Bassi, has revealed the new sales comprise a property in Surrey for £2.5m and a property in Watford for £1.5m, both of which are located outside of the company’s core markets of central Birmingham and the Midlands.

Both sales were made at levels above the company’s book values.
 
REI plans to release half year results for the six months ended 30 June on  September 16. 
 
Bassi, the firm’s chief executive, said: “These recent sales are debt free and non-core.  The capital receipts will provide additional funds to capture criteria compliant property in our current pipeline of acquisitions, where we have over £20m of new purchases under offer or in legal process. 

“In line with our strategy, we remain on track to grow our portfolio to in excess of £200m within the next six months.”

Bassi believes that REI, now a Real Estate Investment Trust, is set to benefit from rising demand from institutional and overseas investors for regional real estate and the re-emergence of Birmingham and the West Midlands economy. 

Major employers HSBC, Deutsche Bank and HS2 have recently announced relocations to the city.

Birmingham’s commercial market has enjoyed a record year with more than 1,000,000 sq ft of grade A space being snapped up in the last 12 months and the West Midlands recorded its best year for foreign investment in a decade.

REI’s localsales this year have included 24 Bennetts Hill, Birmingham, 770-772 Bristol Road South in Northfield, Birmingham, 85-89 Colmore Row, Birmingham,  150 Birmingham Road, West Bromwich and 36 Great Charles Street, Birmingham.