18th Jun 2015 09:50
LONDON (Alliance News) - Real Estate Investors PLC Thursday said it has invested GBP25.0 million in six properties.
In a statement, the Birmingham-based property group said it has acquired five new investment properties for GBP24.0 million, as well as a vacant property for GBP925,000, all in Birmingham and the Midlands.
The initial rental income from the investment properties is GBP2.3 million per annum, with an estimated rental value of GBP24 million per annum, a net initial yield of 8.89% and a reversionary yield of 9.32%.
The weighted average unexpired lease term of the five investment properties is 7.30 years and 4.02 years to break.
"We remain on course to grow our portfolio and continue to deliver on our commitment of a progressive dividend policy. The new properties complement REI's portfolio, which is benefitting from a healthy regional property market, and we anticipate record contracted rental income and property portfolio valuations for 2015," Chief Executive Paul Bassi said in a statement.
Bassi said the company is in "advanced discussions" to make further sales and acquisitions.
Shares in Real Estate Investors were flat at 64.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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