15th Jan 2014 10:20
LONDON (Alliance News) - Real Estate Investors PLC Wednesday said it has signed a number of significant lettings during the second-half, as it benefited from a recovery in the fair vale movement charge on a financial instrument of GBP2 million, which is a non-cash item.
The property investment company, with interests in commercial and residential properties throughout the UK, said it has completed lettings to the Royal College of Surgeons, Shaw Trust and Sandwell Inspired Partnership Services Limited.
The Royal College of Surgeons of Edinburgh has taken a 10 year lease for the fifth floor at 85-89 Colmore Row, at a rental of GBP74,320 a year, while Sandwell Inspired Partnership Services Limited signed a 10 year lease for 25,000 sq ft at Guardian House in West Bromwich at an annual rental of GBP251,792.
Real Estate Investors said a number of additional lettings have also been completed and it has a strong pipeline going into 2014.
The firm also sold part of its portfolio during the period including the disposal of a portion of Southgate Retail Park to Lidl for the sum of GBP4.3 million, while it sold its investment properties in Crawley and Wakefield for a combined £2.0 million.
The total sale proceeds of these three properties are significantly in excess of their book value, it added.
Real Estate Investors said banking support has been excellent, while the regional economy has gained in confidence and acitvity.
"We are experiencing an improving regional investment and occupier market, resulting in an excellent year of progress in 2013, when we increased our dividend by 100%," Chief Executive, Paul Bassi, said in a statement.
"In 2014, we intend to move to a more normal dividend payout strategy, with twice yearly payouts post the interim and full year results," he added.
The firm plans to continue activity across its portfolio with further opportunistic acquisitions, sales and lettings as well as a continuation of its "progressive" dividend policy.
The stock remained unchanged at 49.50 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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