4th Jul 2014 07:35
LONDON (Alliance News) - Real Estate Investors PLC Friday said it has sold Cathedral Place, at 42-44 Waterloo Street in Birmingham, to Can Life UK for GBP4.6 million, and said that it is in discussions over further potential asset sales.
In a statement, Real Estate Investors said the property, which totals 12,933 square feet, has achieved a net initial yield of 4.12%.
"This sale is significantly above our book value and more accurately reflects the potential value of properties within our portfolio and reveals a much-improved regional property investment market. We continue to receive interest in a number of our properties and are in discussion in respect of other sales which will provide the company with returns in line with our expectations," Chief Executive Paul Bassi said in a statement.
In a separate trading update, Real Estate Investors said that it continues to complete lettings in an improved occupier market.
"During the first half of 2014, we have made excellent progress on lettings, acquisitions and sales. I anticipate continued further activity during the second half in a significantly improved regional economy and property market. The company will continue with its progressive dividend policy and will declare the interim dividend in September 2014 and a final dividend in March 2015," Bassi said.
The CEO also said that Real Estate Investors still intends to convert to a real estate investment trust in the near future.
Real Estate Investors shares were Friday quoted at 53.0 pence, up 2.4%.
By Samuel Agini; [email protected]; @samuelagini
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