Birmingham based Real Estate Investors (REI) has announced the acquisition of a Walsall retail scheme, pushing the value of its assets beyond the £100 million mark.
REI acquired 59/75 Park Street from Scottish Widows for a £7.7 million sum earlier this week, with the firm hoping to add value to the centre’s current £814, 312 annual rental income.
Paul Bassi, chief executive of REI, believes the acquisition will prove to be very profitable for the group.
He says; “With this latest acquisition, our gross assets now exceed £100 million, predominantly acquired during the property and financial market downturn.
“The portfolio is diverse, with active asset management opportunities and is now benefiting from an improved property market.
“I anticipate an excellent year with record gross property assets, contracted rental income and dividend pay out to our shareholders.”
In the short term, REI is expected to further boost the Walsall retail destination’s value by discussing lease renewals and rent reviews with existing tenants.
REI has seen huge success in terms of profits this year, as its most recent half year results show a boost in pre-tax profit to £2.6 million. This is a 238 per cent increase from the same period in 2013, when pre-tax profits of just £769, 000 were revealed.
As a result, it is believed that REI will soon convert its status to a real estate investment trust (REIT) rather than its current format as a property investment firm, as this will improve tax efficiency and allow for further investment into its property portfolio.
So far this year, REI has acquired property in Birmingham, Leicester, Sandwell, Wolverhampton and Bromsgrove among others, which has broadened its tenant portfolio to include names such as HSBC, WH Smith, the Royal College of Surgeons and Marks & Spencer Simply Food.
It will now turn its attention to the construction of a restaurant in Birmingham City Centre, on a plot formerly occupied by the Midland Bank.
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