REI takes Kingston House in £3m deal
Real Estate Investors (REI), the Birmingham-based property group, has acquired Kingston House in West Bromwich for £3.1m, representing a yield in excess of 11 per cent. The company also revealed it has received detailed planning consent for eight homes at its recently acquired former pub in Dudley.
Kingston House is currently fully let and is producing rental income of £365,000 per year. The principal tenant is Sandwell Primary Care Trust representing a rental of £250,000 per annum. Its lease will expire in July 2019.
Paul Bassi, chief executive of REI, said the company’s latest acquisition was “an excellent addition to our rapidly growing portfolio of income generating properties".
The company has also received planning permission for eight three-bedroom semi detached homes on the site of former public house, Hill Tavern, in Dudley.
This planning consent now takes REI's total residential plots to more than 40 from former public houses.
Bassi said: "We will continue to acquire opportunistic residential sites that we believe represent real value to REI, giving us the potential to either resell for healthy profits or develop the sites for retention, providing REI with favourable yields and rental."
