Business
Investment Update
Investment Update.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n RNS Number : 6923P Real Estate Investors PLC 21 July 2010 \n \n\n 21 July 2010\n \nReal Estate Investors plc\n(\"REI\" or \"the Company\" or \"the Group\")\n \nINVESTMENT UPDATE\n \nReal Estate Investors plc (AIM:RLE), the West Midlands based property group, announces the following information in relation to its recent investing activities.\n \nInvestments\n \nThe Company is pleased to confirm that, on the 19 July 2010, it unconditionally exchanged contracts to acquire the property at 75-77 Colmore Row, Birmingham for £4.5 million in cash. The property comprises a prime listed office building in the heart of the city centre, comprising 18,676 sq ft over 5 floors, and is fully let to PricewaterhouseCoopers LLP until 24 December 2013, producing annual rental income of approximately £400,000. The Directors believe that the property provides significant asset management scope as the tenant has vacated and the property is currently sublet. The Company anticipates completing the acquisition on or around 28 July 2010.\n \nThe Company also recently acquired two sites for a total of £335,000. These sites have the potential to be redesignated as residential land and they will be sold once planning consent is obtained. The Directors believe that these properties could achieve a significant uplift in value in the event residential planning consent is obtained as demonstrated with the recent sale of The Red Lion Public House, described below.\n \nDisposals\n \nOn 14 July 2010, the Company sold The Red Lion Public House, Tividale having obtained outline residential planning consent. The property, which was acquired for £175,000 in November 2009, was sold for £375,000. \n \nAsset management\n \nNew rentals for the year to date have resulted in additional contracted rental income of over £400,000 per annum for the Company. The Company is in the process of completing a number of other lettings which have been agreed, subject to contract, which the Directors anticipate should complete in the next few months.\n \nCommenting on the Company's activities, Paul Bassi, Chief Executive, said, \"We have significant opportunities in our pipeline and nearly all are from distressed vendors, bank recovery departments or insolvency firms. We an...