REI back in profit with “winning strategy”
Paul Bassi’s Real Estate Investors (REI) property group, based in West Bromwich, has reported a remarkable £20m swing into profit for the year to 31 December 2009. REI posted profits of £4.3m, against a loss of £15.7m in 2008. Rental income was also up 8 per cent to £3.2m (2008: £3m). The company made property acquisitions worth £2.8m during the year, and gross property assets were valued at £54.8m, up £6.3m on 2008. REI raised £10.1m in February “at a premium to the share price” to enable it to capitalise on market opportunities over the coming 18 months. Chairman Peter Lewin, who is stepping down at the forthcoming AGM, said: “Our existing cash resources and secured banking relationships place us in an enviable position to capitalise on opportunities during 2010/11 and create a property portfolio of £100m plus. We anticipate that the banking sector will begin to release assets that they have placed in ‘recovery’, and the lack of banking finance available for our target acquisitions will place the company in an advantageous position as an experienced cash buyer.”
