Business
Property Acquisition
Property Acquisition.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \nRNS Number : 5114A Real Estate Investors PLC 08 June 2016 \n\n 8 June 2016\nReal Estate Investors plc\n('REI' or 'the Company')\n£20 million acquisition of retail centre\nNet Initial Yield of 9%\nSignificant opportunities to add value to the existing scheme\n \nReal Estate Investors plc (AIM:RLE), the Birmingham based property group and UK listed Real Estate Investment Trust ('REIT'), is pleased to confirm the freehold acquisition of the 'Market Shopping Centre' in Crewe from Scottish Widows for the sum of £20 million, through the Company's existing cash resources and/or bank facilities, representing a net initial yield of 9.00%.\n \nThe property produces £2,165,000 rental income per annum (gross), with a WAULT of 5.14 years to expiry and 4.35 years to break. The market-based shopping centre incorporates 25 retail units with predominantly ground floor retail accommodation and first floor ancillary. In total, there is 154,130 square feet of retail and ancillary accommodation, with 294 external car parking spaces. Contracted tenants include River Island, Halifax, Superdrug, Brighthouse, Ernest Jones, Hutchinson 3G, Argos, Iceland, B&M, Peacocks and Poundworld. The retail space has 100% occupancy.\n \nThe acquisition is fully criteria compliant with REI's investment strategy and operational geographical radius and provides significant opportunities to 'add value' through rent reviews, lease renewals and the creation of additional units on the substantial external car parking facility to increase the retail footprint of the overall site which is attractive for retailers and consumers alike. There is also scope to restructure the scheme, which will provide potential for significant capital uplift.\n \nThis acquisition takes total acquired assets in the year to date to over £35 million and will take the Company's current contracted rental income to £15.7m.\n \nPaul Bassi, CEO of REI, commented:\n\"We have continued to acquire criteria compliant assets during the period of uncertainty created by the European vote. This latest acquisition offers good opportunities to enhance performance through strategic asset management and takes our contracted rental income to £15.7m, up 31.8% since the 2015 year-end. \n \n\"Additionally, we have a number of ongoing sales ...