Real Estate Investors plc (AIM: RLE), the West Midlands based property group, announces that it has exchanged contracts to acquire three properties in the Midlands for a total of £13.05 million, in cash.
The properties produce a total current rent of £1.55 million, representing an initial yield of 11.84%. These acquisitions increase the Company’s total annualised rent roll to £6.11 million, a 50% increase since 1 January 2011.
The properties are:
Southgate Retail Park, Derby – a 53,202 sq. ft., eight unit retail park currently producing £412,074 per annum from tenants including Lidl, Gym 4 All, Dreams and Deeley Properties. There are two vacant units totalling 10,838 sq. ft. The property was acquired for £4.8 million from TAP Property.
Peat House, 1 Waterloo Way, Leicester – a prime city centre 43,437 sq. ft., five floor office building let to KPMG, at £510,225 per annum on a lease to June 2015. The property was acquired for £4.4 million from Aviva.
Gateway House, 50-53 High St, Birmingham – a 27,071 sq. ft. retail and office building, next to Marks & Spencer and near to the Bullring retail centre, producing £623,398 per annum from tenants including Arcadia, Randstad and Heart of England Training, National Shelter and Brightsun. One office unit of 4,069 sq. ft. is vacant. The property was acquired for £3.85 million, again from Aviva.
Paul Bassi, Chief Executive of REI, 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 £75million and, with existing cash and bank facilities, we remain on track to achieve a portfolio of £100 million within the next six to twelve months.”