Trio of Midlands office & retail properties acquired

Real Estate Investors pays £13m for Derby, Leicester and Birmingham schemes

Article posted: 14 Sep 2011

West Midlands based property group, Real Estate Investors, has exchanged contracts to acquire three properties comprising retail and office space in the Midlands for a total of £13.05m, in cash.

The properties produce a total current rent of £1.55m, representing an initial yield of 11.84%. These acquisitions increase the Company’s total annualised rent roll to £6.11m, a 50% increase since 1 January 2011.

The properties include office space in Leicester currently let to KPMG for £510,225 per annum on a lease to June 2015. Acquired from Aviva for £4.4m, Peat House, 1 Waterloo Way is a prime city centre 43,437 sq ft, five floor office building.

Also purchased from Aviva for £3.85m, Gateway House is a 27,071 sq ft mixed-use property comprising retail and office space in Birmingham city centre close to the Bullring shopping precinct. Producing £623,398 per annum from tenants including Arcadia, Randstad and Heart of England Training, National Shelter and Brightsun, it has only one office unit of 4,069 sq ft vacant.

The third property is a retail park in Derby acquired for £4.8 million from TAP Property.

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 £75m and, with existing cash and bank facilities, we remain on track to achieve a portfolio of £100m within the next six to twelve months.”

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Posted by Sara