Business
Notice of General Meeting and Acquisition
Notice of General Meeting and Acquisition.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n 24 November 2008\n Real Estate Investors plc\n (\"REI\" or the \"Company\")\n\n Notice of General Meeting and Acquisition of Metro Court\n\nReal Estate Investors plc (AIM: RLE), the West Midlands based property company,\nis pleased to announce that on Friday, 21 November 2008, it exchanged\ncontracts to acquire Metro Court (WB) Limited (\"Metro Court\"), a special\npurpose vehicle, whose principal asset is a three storey office block\nlocated in West Bromwich town centre. The building has been recently renovated\nand new leases negotiated. As the Acquisition is a substantial property\ntransaction involving a director of the Company (Paul Bassi), pursuant to s190\nof the Companies Act 2006, it requires the approval of Shareholders in General\nMeeting and the Acquisition is conditional upon that approval. Paul Bassi will not\nbe able to vote on the resolution to approve the Acquisition.\n\nREI has agreed, subject only to Shareholder approval, to acquire the entire\nissued share capital of Metro Court for a total consideration of £675,000, paid\nin cash. As part of the Acquisition, the Company will assume a term loan\nfacility of £2.5 million from Yorkshire Bank, relating to the property and will\nprocure the repayment by Metro Court of £500,000 of loans to the shareholders\n(other than Paul Bassi).\n\nThe property held by Metro Court has been valued by an independent professional\nvaluer, Gerald Eve, at £4,100,000. Metro Court has recently completed a lease of\ntwo floors to the Sandwell Mental Health NHS & Social Care Trust which provides\nfor rental income of £221,563 per annum. The company is currently in advanced\nnegotiations on a lease for the third floor. Following completion of the\nAcquisition and assuming the property is fully let, REI will benefit from a\nrental income rising to approximately £350,000 per annum.\n\nThe Acquisition Agreement contains warranties and a tax covenant in favour of\nthe Company. A copy of the Acquisition Agreement is available for inspection at\nthe offices of Smith & Williamson Corporate Finance Limited, 25 Moorgate, London\nEC2R 6AY up to the time of the General Meeting and will be available at the\nGeneral Meeting.\n\nThe resolution seeking approval of the Acquisition is set out in the notice\nconvening the General Meeting to be held at the Company's offices at 8th Floor,\nWest P...