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Real Estate Investors in triple property deal

Listed group sells office block in Birmingham's business district and also buys retail-led premises

Real Estate Investors has sold this Colmore Row property

Birmingham property group Real Estate Investors has acquired two properties and disposed of a third in the city's business district.

The listed group has bought a mixed-use development in Alcester Road South, Maypole, whose tenants include a Travelodge hotel, homeware retailer Wilko and bookmaker Ladbrokes.

The site was acquired for £6.1 million and the hotel and six ground floor retail units have a combined contracted rental of £469,875 per year.

The second purchase is a leisure and retail investment at Barracks Road, in Newcastle-under-Lyme, for £2.8 million.

It has annual rental income of £238,700, rising to £261,696 from February 2018.

It has four purpose-built units and is let to three tenants, gym chain Exercise4less, retailer Bathstore and pizza takeaway Domino's.

Real Estate Investors has also sold a part-vacant investment property at 102-106 Colmore Row to Cervidae Consultancy for £7.2 million.

Chief executive Paul Bassi said: "Against a backdrop of political uncertainty, we have enjoyed an excellent period of activity during which we have secured a further £8.90 million of criteria-compliant investment property.

"We have further improved our occupancy and contracted rental income together with a strategic sale while maintaining a near £200 million portfolio.

"These recent acquisitions provide immediate income and asset management opportunities and have the potential to provide capital growth.

"We believe that economic uncertainty from Brexit negotiations will provide further opportunities for acquisitions which, together with transactions that are already under offer, will deliver increased contracted rental income in 2017 which is in line with our strategy to support the further growth of our fully covered dividend payments."

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