21st Dec 2015 12:40
LONDON (Alliance News) - Real Estate Investors PLC on Monday said it has acquired properties in Wolverhampton and Coventry for GBP7.1 million in cash, generating income of GBP730,362 per annum at a net initial yield of 9.8%.
A prime retail unit in Wolverhampton City centre, producing GBP276,200 in rental income and let to River Island, was acquired from the Irish National Asset Management Agency, with a net initial yield of 13.05%, the company said. The property was previously acquired for GBP5.4 million in August 2004, and the lease is due to expire in March 2016. Real Estate Investors said it is in talks with River Island about renewing the lease.
Meanwhile, in Coventry, it bought an office scheme with a weighted average annual unexpired lease term to expiry of 11.33 years and 6.98 years to break. The office is let to Yazaki Europe, Chubb, Minitab and Saint-Gobain Building Distribution and generates GBP454,162 in rental income per annum.
That incorporates a parcel of land for expansion, at a net initial yield of 8.37%.
"These properties are excellent additions to our growing portfolio and both acquisitions provide immediate income and asset management opportunities that have the potential to provide capital growth," Real Estate Investors Chief Executive Paul Bassi said.
Real Estate Investors shares were down 1.2% at 65.20 pence Monday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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