Profits sink at Bassi's REI
Birmingham property company Real Estate Investors (REI) has posted a pre-tax loss of £1.9m for the first six months of 2011.
REI said the loss reflected a revaluation defecit of £1.7m and revaluation losses of more than £70,000.
Paul Bassi's company said it made £3.3m of acquisitions in the first half of 2011. Rental income also rose 9 per cent in the period.
For the six months to 30 June 2011, REI's gross property assets were valued at £60.3m, up from £56.5m in the comparable 2010 period.
In July 2011, the Stock Exchange-listed company successfully raised £11.7m.
Before the period end, it had made £13m of property acquisitions.
Bassi, chief executive of REI, said: "Despite the doom and gloom in the financial markets we remain positive, focussed and continue to run our business prudently with the view to improving rental income and subsequent capital growth.
"With our existing cash and agreed bank facilities, we will secure further opportunistic investments that will comply with our acquisition criteria of attractive yields, asset management, and rising capital values."
