Business
Property Acquisitions
Property Acquisitions.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \nRNS Number : 8409X Real Estate Investors PLC 11 May 2016 \n\n \n11 May 2016\n \nReal Estate Investors plc\n(\"REI\" or the \"Company\")\n \nProperty Acquisitions\n \nReal Estate Investors plc (AIM: RLE) the Birmingham based property group and UK listed Real Estate Investment Trust, is pleased to confirm the acquisition of two additional investment properties in Telford and Nottingham for a total consideration of £5.135m, producing a combined rental income of £506,710 per annum and a net initial yield of 9.26%.\nThe investment properties acquired are as follows:\nTitan House, Euston Park, Telford - acquired from receivers. The building is situated on a modern business park, adjacent to Telford Central Station and Junction 5 of the M54. Titan House comprises 33,166 sq ft of modern office accommodation over 4 floors and 103 car parking spaces. The property is let to Hewlett Packard Enterprise Service UK Ltd with 4.5 years remaining and a current rental income of £270,000 p.a. The purchase price reflects a net initial yield of 9.91% and a low capital value rate of £83 per square foot. Whilst the property is fully occupied, the tenant currently benefits from a rent free period over the entire first floor, which offers good prospects for rental improvement.\nCommodore Court, Nuthall Road, Nottingham - acquired from a private property company. The property comprises a prominent mixed use development, situated on a busy arterial route in Nottingham. The building incorporates three fully occupied retail units, occupied by Sainsbury's Supermarkets Limited, Banardos and Bathstore Limited, with a weighted average annual unexpired lease term (WAULT) to expiry of 11.30 years and 5.27 years to break options. The property produces a rental income of £216,710 per annum and the purchase price reflects a net initial yield of 8.49%.\nPaul Bassi, CEO of REI, commented: \"We have taken the opportunity to acquire additional criteria compliant assets during a period of uncertainty created by the European vote. We have further assets under offer and we are confident of achieving our contracted rental income and progressive dividend objectives. Total acquisitions in 2016 to date are £15.58m and our contracted rental income is now £13.40m, up 12.60% since ...