14th Jan 2015 09:11
LONDON (Alliance News) - Real Estate Investors PLC, a West Midlands based property group, Wednesday said it has completed a number of deals that leave it in a good position to grow its rental income and continue with its progressive dividend policy throughout 2015.
The group said it has acquired 24 Bennetts Hill, a prime City centre office with ground floor restaurant and bar for GBP2.06 million, producing GBP235,000 per annum in rent at a yield of 10.80% and a weighted average unexpired lease term of 9.8 years.
According to the AIM listed property investment company, the property, whose tenants include Punch Taverns, Specsavers and Zapaygo, provides a variety of "asset management opportunities to enhance rental income and value".
In addition, Real Estate Investors has unconditionally sold land in Bilston, West Midlands for GBP1.875 million, a price "significantly above" book value.
The company said it also secured a number of lease completions prior to the year-end which will contribute to the company achieving "record" contracted rental income.
"These transactions, coupled with our conversion to a real estate investment trust as of January 1, 2015, and a secure and stable property portfolio, leave REI well positioned to grow our rental income and continue with our progressive dividend policy throughout 2015," Paul Bassi, chief executive, said in a statement.
Real Estate Investors shares were up 0.9% at 59.50 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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