REI raises over £5.5m from High Street property sales

Real Estate Investors plc has raised £5,530,000 with the sale of two High Street commercial properties in Bearwood in Birmingham and Pontypool, at levels significantly above historic “pre-pandemic” book values.

Due to the strong trading performance of its Bearwood store, Aldi has purchased the freehold of the property for £5,350,000, representing a yield of 5.26%. The sale price reflects a 32% uplift in value against the December 2019 year end valuation of £4,053,000.

In Pontypool, REI has sold 124-125 Osborne Road, Pontypool, for £180,000, representing a 38% increase above the pre-pandemic valuation of December 2019. The property is let to Lloyds Pharmacy and the initial yield is 8.16%.

Paul Bassi, chief executive of REI, said: “The funds raised will be used to repay debt with a view to reducing net gearing levels and securing value adding acquisitions to enhance portfolio capital and income growth.

“This will, in turn, support REI’s ongoing progressive dividend policy.”

He added that, located in the heart of the Midlands region, the business remains well positioned to benefit from regional initiatives and events, in particular HS2 and the impending Commonwealth Games in 2022.

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For further information, please contact:

Jack Sears, Asset Manager,

Real Estate Investors plc, 2nd Floor, 75/77 Colmore Row, Birmingham B3 2AP

0121 265 6406 or 0121 212 3446

Prepared and issued by Andy Skinner at ASAP – 07990 978257

About Real Estate Investors Plc

Real Estate Investors Plc (REI Plc) is a publicly quoted, internally managed property investment company and REIT with a portfolio of 1.5 million sq ft of commercial property, managed by a highly-experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.

The company’s strategy is to invest in well located, real estate assets in the established and proven markets of central Birmingham and the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings.  The portfolio has no material reliance on a single asset or occupier.