Midland property specialists Real Estate Investors plc (REI)
have raised up to another £15 million from City
investors.
It comes as the business, led by Paul Bassi, former president of
Birmingham Chamber of Commerce, is also considering opting for Real
Estate Investment Trust (REIT) status.
The fresh investment raises the company's market capitalisation
to nearly £45million, with a portfolio of property valued at
nearly £60million.
The institutional investors hope to capitalise on opportunities
in the property market at cyclical low prices, benefiting from an
experienced management team.
The team, which includes John Crabtree, former head of law firm
Wragge, has over 30 years of experience in the Midland's
property market and strong links with some of the region's key
property advisors including CP Bigwood, Bond Wolfe and Paul
Dubberley, where Mr Bassi and finance director Marcus Daly are
major shareholders.
REI already has a number of landmark properties within their
portfolio. Birmingham city centre properties include 75/77 Colmore
Row (let to PricewaterhouseCoopers), 102/106 Colmore Row, Latitude
in the Chinese Quarter, York House on Great Charles Street and
Cathedral Place on Waterloo Street.
Other prominent properties include Kingston House and Guardian
House both located in West Bromwich, Avon House in Bromsgrove, and
retail parades in Kings Heath, Rugeley and Walsall.
The fundraising, existing cash and banking facilities provide
REI with a £100 million war chest to invest in a distressed
market with a focus on shops, offices and residential property.
REI is also considering a conversion to become a Real Estate
Investment Trust and, subject to a change in legislation, will no
longer be required to pay tax on its profits but will have to pay
up to 90 per cent of its profits out in the form of dividends to
its shareholders, which will include the management team and board,
who retain over 45 per cent of the shareholding.
Law firm Gateley acted for REI on the fund-raising.