Real Estate Investors, the West Midlands-based property group,
has seen a surge in rental income.
It announced yesterday (Wed July 13) that, in the six months to
June 30, contracted rents had increased 12 per cent to £4.54
million per annum against the 2010 year end figure of £4.06
million.
Current estimated rental value is approximately £5.75
million a year.
New tenants include Pertemps Employment Alliance and Bank of
Scotland (Halifax).
Paul Bassi, chief executive of REI, said: "We have a number of
additional lettings in advanced discussions or under legal
negotiation which, together with pipeline new purchases, we believe
will provide REI with record rental income at the year end."
It is selling properties in Chingford, in north east London, and
Wakefield, Yorkshire, as a result of its "asset management
objectives having been achieved". Let to Tesco and Bank of
Scotland respectively, both are currently under offer at above book
value. Their combined rent is £124,000 a year.
REI is an AIM listed investment company specialising in
commercial and residential property principally in the West
Midlands and central England.
It focuses on delivering shareholder value through returns
generated from strong yields and capital enhancements, targeting
investments in orphaned, distressed, part-let and underperforming
assets.
As at December 31, REI's portfolio and inventories were valued
at £56 million.