Business
Property Transactions Update
Property Transactions Update.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \nRNS Number : 9847H Real Estate Investors PLC 14 June 2017 \n\n14 June 2017\nReal Estate Investors Plc\n('REI' or 'the Company')\n \nPROPERTY ACQUISITIONS AND DISPOSALS UPDATE\n \nAcquisitions increase occupancy and total annual rental income\n \nStrategy on track to support progressive dividend policy\n \n \nReal Estate Investors Plc (AIM:RLE), the Birmingham based property group and UK listed Real Estate Investment Trust ('REIT'), is pleased to announce two recent acquisitions and a sale.\n \nThese transactions have improved overall occupancy to 94.5%, and contracted rental income has increased to £15.32 million per annum, up 2.8% since year end (allowing for the sale of Colmore Row / Bennetts Hill - see Disposal below). Additionally, from within the existing portfolio, REI has £335,000 per annum of letting deals in legal pipeline, the completion of which will further improve rental income and occupancy across the portfolio.\n \nAcquisitions\n \n· Alcester Road South, Maypole, Birmingham has been acquired for £6.1 million at a net initial yield of 7.22% with a reversionary yield of 7.31% and incorporates a 60 bed hotel together with six ground floor retail units, with a combined contracted rental of £469,875 per annum, of which £201,000 per annum is secured against Travelodge Limited for a further 24 years and subject to CPI-linked rent reviews. The property is well let to covenants including Travelodge, Wilko Retail, Ladbrokes, Halfords, Subway and KFC, with a WAULT of 12.25 years.\n \n· Barracks Road, Newcastle-under-Lyme has been acquired for £2.8 million at a net initial yield of 8.00% and a reversionary yield of 8.78% in February 2018, producing £238,700 per annum, rising to £261,696 per annum in February 2018. The property comprises a Leisure and Retail investment of four purpose-built units and is let to three tenants - Xercise4Less, Bathstore and Domino's, with a WAULT of 9.25 years. \n \nDisposal\n \n· The sale of a part vacant investment property at 102-106 Colmore Row / 6 Bennetts Hill in Birmingham City Centre for a total consideration of £7.2million, reflecting a current net initial yield of 4.36% and a ...