REI acquires trio in £13m deals
Birmingham property company Real Estate Investors (REI) has made £13m of acquisitions across the Midlands, it revealed this morning. Among the purchased sites is Birmingham's Gateway House.
The building, located on 50-53 High Sreet, was bought for £3.85m from Aviva.
It comprises 27,071 sq ft of retail and office space and is located next to Marks & Spencer. It produces £623,398 per annum from tenants including Arcadia, Randstad and Heart of England Training, National Shelter and Brightsun. One retail unit of 4,069 sq ft is vacant.
Southgate Retail Park in Derby was also bought by Paul Bassi's company for £4.8m. The eight-unit retail outlet totals 53,202 sq ft and currently produces £412,074 per annum from tenants including Lidl, Gym 4 All, Dreams and Deeley Properties. It was purchased from TAP Property.
Leicester's Peat House on Waterloo Way was the final buy of the trio. The city centre building, which spans five floors, totals 43,437 sq ft It is let to accountancy firm KPMG at £510,225 per annum on a lease to June 2015. The property was acquired for £4.4m from Aviva.
Paul Bassi, chief execuitve 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 12 months."
They produce a total current rent of £1.55m, representing an initial yield of 11.84 per cent. Once completed, the deals will increase the company's total annualised rent roll to £6.11m, a 50 per cent rise from 1 January 2011.
