Listed Birmingham property group Real Estate Investors has taken another step towards its goal of having a £200 million management portfolio by acquiring a shopping centre.
The Colmore Row-based group has bought The Market Shopping Centre in Crewe from Scottish Widows for £20 million.
The deal provides REI with an initial net yield of nine per cent.
This acquisition takes total acquired assets in the year to date to more than £35 million and will boost REI's current contracted rental income to £15.7 million.
Market Shopping Centre has 25 retail units, is home to tenants including River Island, Halifax and Superdrug and is fully occupied.
It produces annual rental income of £2.16 million.
REI's chief executive Paul Bassi said: "The acquisition is fully criteria compliant with REI's investment strategy and operational geographical radius and provides significant opportunities to add value through rent reviews, lease renewals and the creation of additional units on the substantial external car parking facility to increase the retail footprint of the overall site which is attractive for retailers and consumers alike.
"This latest acquisition offers good opportunities to enhance performance through strategic asset management and takes our contracted rental income to £15.7 million, up 31.8 per cent since the 2015 year end.
"Additionally, we have a number of ongoing sales and acquisitions that are in our legal pipeline, or in advanced discussions, with numerous new lettings and lease renewals from within the existing portfolio, which will enhance rental income and our average lease lengths."
REI was advised by law firm CBTC Millichips.