Real Estate Investors (LON:RLE) revealed it has spent almost £25mln increasing substantially the size of its West Midlands commercial property portfolio.
The acquisitions, including 40 St Paul’s Square in Birmingham’s Jewellery Quarter, were funded by April’s £45mln share placing.
The initial rental income is put at £2.26mln, which equates to an initial yield of almost 9%.
BIG BUYS - WHAT REI BOUGHT
40 St Paul's Square, Birmingham
Bearwood Shopping Centre, Bearwood
Virginia House, Worcester
1062-1104 Warwick Road, Acocks Green
Castlegate House, Dudley
"We remain on course to grow our portfolio and continue to deliver on our commitment of a progressive dividend policy. The new purchases provide excellent prospects for capital upside and immediate rental income to enhance profitability,” said chief executive Paul Bassi.
Bassi said also revealed that REI is in “advanced discussions” on property sales as well as a number of further acquisitions.
H said the company is on course to grow its portfolio to £200mln in the next 12 months. At the end of last year its properties were worth £104mln.