Real Estate Investors PLC Property Transactions Update (9847H)
June 14 2017 - 2:00AM
UK Regulatory
TIDMRLE
RNS Number : 9847H
Real Estate Investors PLC
14 June 2017
14 June 2017
Real Estate Investors Plc
('REI' or 'the Company')
PROPERTY ACQUISITIONS AND DISPOSALS UPDATE
Acquisitions increase occupancy and total annual rental
income
Strategy on track to support progressive dividend policy
Real Estate Investors Plc (AIM:RLE), the Birmingham based
property group and UK listed Real Estate Investment Trust ('REIT'),
is pleased to announce two recent acquisitions and a sale.
These transactions have improved overall occupancy to 94.5%, and
contracted rental income has increased to GBP15.32 million per
annum, up 2.8% since year end (allowing for the sale of Colmore Row
/ Bennetts Hill - see Disposal below). Additionally, from within
the existing portfolio, REI has GBP335,000 per annum of letting
deals in legal pipeline, the completion of which will further
improve rental income and occupancy across the portfolio.
Acquisitions
-- Alcester Road South, Maypole, Birmingham has been acquired
for GBP6.1 million at a net initial yield of 7.22% with a
reversionary yield of 7.31% and incorporates a 60 bed hotel
together with six ground floor retail units, with a combined
contracted rental of GBP469,875 per annum, of which GBP201,000 per
annum is secured against Travelodge Limited for a further 24 years
and subject to CPI-linked rent reviews. The property is well let to
covenants including Travelodge, Wilko Retail, Ladbrokes, Halfords,
Subway and KFC, with a WAULT of 12.25 years.
-- Barracks Road, Newcastle-under-Lyme has been acquired for
GBP2.8 million at a net initial yield of 8.00% and a reversionary
yield of 8.78% in February 2018, producing GBP238,700 per annum,
rising to GBP261,696 per annum in February 2018. The property
comprises a Leisure and Retail investment of four purpose-built
units and is let to three tenants - Xercise4Less, Bathstore and
Domino's, with a WAULT of 9.25 years.
Disposal
-- The sale of a part vacant investment property at 102-106
Colmore Row / 6 Bennetts Hill in Birmingham City Centre for a total
consideration of GBP7.2million, reflecting a current net initial
yield of 4.36% and a premium to the December 2016 year end
valuation. The purchaser was Cervidae Consultancy.
Paul Bassi, CEO of REI, commented:
"Against a backdrop of political uncertainty, we have enjoyed an
excellent period of activity during which we have secured a further
GBP8.9 million of criteria compliant investment property and
further improved our occupancy and contracted rental income
together with a strategic sale, whilst maintaining a near GBP200
million portfolio. These acquisitions provide immediate income and
asset management opportunities and have the potential to provide
capital growth.
"We believe that economic uncertainty from Brexit negotiations
will provide further opportunities for acquisitions, which together
with transactions that are already under offer will deliver
increased contracted rental income in 2017, which is in line with
our strategy of supporting the further growth of our fully covered
dividend payments."
Ends.
Enquiries:
Real Estate Investors Plc
Paul Bassi +44 (0)121 212 3446
Smith & Williamson Corporate
Finance Limited
Azhic Basirov/David Jones +44 (0)20 7131 4000
Liberum
Jamie Richards/Ben Roberts +44 (0)20 3100 2000
Gable Communications Limited +44 (0)20 7193 7463
John Bick +44 (0)7872 061007
rei@gablecommunications.com
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted property
investment company with a portfolio of over 1.4 million sq ft of
commercial property managed by a highly experienced property team
with over 100 years of combined experience of operating in the
Midlands property market across all sectors.
The Company's strategy is to invest in well located, real estate
assets in the established and proven markets of central Birmingham
and the Midlands, with income and capital growth potential,
realisable through active portfolio management, refurbishment,
change of use and lettings. The portfolio has no material reliance
on a single asset or occupier.
On 1st January 2015, the Company converted to a REIT. Real
Estate Investment Trusts are listed property investment companies
or groups not liable to corporation tax on their rental income or
capital gains from their qualifying activities.
The Company aims to deliver capital growth and income
enhancement from its assets, supporting a progressive dividend
policy. Further information on the Company can be found at
www.reiplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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