REI starts 2020 with £726,268 in new lettings and renewed leases
Real Estate Investors (REI), the Birmingham-based property investment and asset management company, has enjoyed a roaring start to 2020, announcing seven deals struck in the last few weeks of 2019, totalling £726,268 in annual rental.
REI chief executive Paul Bassi said: “This demonstrates the strength of the regional occupier market, in the right locations, across all sectors and the vibrancy of our regional economy.”
In Birmingham, the AIM-listed REI negotiated a lease renewal with Pertemps who occupy the entire ground floor of Hagley Court, totalling 5,400 sq ft.
Jack Sears, asset manager at REI: “Pertemps has been in occupation since November 2014 and so they wanted to retain their established position in the popular Edgbaston area. Hagley Court has good car parking, adjacent to Hagley Road with good access to the city centre and is on the well regarded Calthorpe Estate.”
Pertemps has agreed a lease renewal for five years from November 2019 with the rent increasing from £36,450 to £45,900 per annum.
In Bromsgrove, AFH Wealth Management surrendered three leases on the ground, first, second and third floor of Avon House, in order to take a new lease on the whole building, signing a ten year agreement from September 2019.
Jack Sears said: “AFH Wealth Management has enjoyed remarkable growth since it moved into what is now called AFH House, previously Avon House, and both parties will now benefit from a new ten year term with an established and respected wealth management company.”
In Warwick at Westgate House, a complex series of negotiations has enabled law firm Moore & TIbbits to expand while Boots has been able to consolidate some of the space it occupied.
Following an agreement with Boots to surrender part of its first floor storage area, REI was able to offer Moore & Tibbits a further 735 sq ft of additional office accommodation, granting the law firm a new lease from January 2020 for ten years
Mr Sears explained: “This is a deal that works well for all three parties. Moore & Tibbits gains much needed office space, Boots has reduced its footprint but REI has been able to capitalise on the conversion from storage space to office space, with circa £7 per square foot difference in value.”
Boots has agreed a new six year lease from December 2019, while Moore & Tibbits rent has increased to reflect the additional space taken.
In Redditch, REI took possession of the first floor of The Quadrant, actioning forfeiture on Prime Fitness, the gym occupier.
Mr Clark said: “REI took possession of the premises and immediately agreed new terms to The Fit Club Redditch Ltd, agreeing a new six year lease from November 2019, with the rent remaining at £60,000 per annum.
“This negated any void period and retained the client base of the gym by ensuring that the gym was kept open.”
In St Paul’s Place, 40 St Paul’s Square, Birmingham, ISG plc has agreed a re-geared lease for a further five years as the tenant was keen to stay in the city and consolidate its business.
In Crewe, Burger King has signed an agreement to take a bespoke pod on a 20 year lease, and REI are due to build the 2,750 sq ft unit.
Mr Sears said: “This is a welcome addition to the tenant mix at the scheme and supports our strategy of investing into our schemes to further enhance the attraction to both customers and tenants.
Paul Bassi said: “The central theme of all these deals is proactive asset management and we are very proud of the results achieved by our asset management team.
“REI is very well placed to take advantage of the current upturn as companies seek to grow their business and the brakes come off the economy after the election and the confused messages emanating from London in the past three years.”
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For further information, please contact:
Paul Bassi, Chief Executive,
Real Estate Investors plc, 2nd Floor, 75/77 Colmore Row, Birmingham B3 2AP
0121 265 6406 or 0121 212 3446
Prepared and issued by ASAP, 01789 490786, mobile, 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.