Real Estate Investors PLC Acquisition (6278T)
18 November 2019 - 6:00PM
UK Regulatory
TIDMRLE
RNS Number : 6278T
Real Estate Investors PLC
18 November 2019
Real Estate Investors Plc
("REI" or the "Company" or the "Group")
Acquisition
Real Estate Investors Plc (AIM: RLE), the London Stock Exchange
listed Real Estate Investment Trust (REIT) with a portfolio of 1.53
million sq. ft. of commercial property in the Midlands property
market across all sectors, is pleased to announce the acquisition
of a fully-let, prime, mixed-use block on The Parade, Royal
Leamington Spa, for GBP7.45 million, generating a net initial yield
of 8.05%.
The property, which includes twelve units, produces GBP639,500
p.a. with a current WAULT of 2.8 years to break and 5.5 years to
expiry. Comprising 31,660 square feet of prime space in a
prosperous Warwickshire town centre, this is a popular shopping
destination let to well-known tenants including: McDonald's, Tiger
UK, Moss Bros, Timpson Limited, Oxfam, Clydesdale Bank, Savers
Health and Beauty, and EE.
Paul Bassi, Chief Executive commented:
"This is an excellent strategic addition to our portfolio,
increasing our exposure to this affluent town, located at the heart
of the London to Birmingham 'Warwickshire corridor'. Royal
Leamington Spa is a prime commuter belt town offering excellent
quality of life, exceptional schools and universities and
impressive Regency, Georgian and Victorian properties at affordable
prices. These factors are attracting migration from London, with
3200 new homes expected by 2024, which will bring an influx of
affluent families, enhancing both residential and prime retail
values.
This prime investment is multi-occupied with a diverse tenant
line-up and provides asset management opportunities to increase
capital and rental income. It takes our contracted rental income to
GBP17.5 million which is up 2.88% in the current financial
year.
Our portfolio continues to trade well, with embedded asset
management opportunities that provide us with the ability to
continue to enhance income and capital values organically.
The Midlands is a growth market within which we are uniquely
connected and together with our existing cash and bank facilities
this makes us ideally placed to make further selective acquisitions
during this period of political and economic uncertainty."
Enquiries:
Real Estate Investors Plc
Paul Bassi/Marcus Daly +44 (0)121 212 3446
Cenkos Securities
Azhic Basirov/Katy Birkin +44 (0)20 7397 8900
Liberum
Jamie Richards/William Hall +44 (0)20 3100 2000
Allenby Capital
Nick Naylor/Asha Chotai +44 (0)20 3328 5656
Novella Communications
Tim Robertson/Fergus Young +44 (0)20 3151 7008
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted, internally
managed property investment company and REIT with a portfolio of
1.53 million sq ft of predominantly 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 across 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.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
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END
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