Real Estate Investors has made another strategic purchase in the heart of the city's key business district.

The company, run by Black Country property investor Paul Bassi, has also pledged to spend up to £100 million buying West Midlands business property next year.

REI has acquired the former Birmingham Midshires and Rigbeys Solicitors offices at 42-44 Waterloo Street, Birmingham for £3 million in cash from GC Europe. The building will now receive a £1 million refurbishment.

The latest acquisition in a number of Midlands purchases by REI takes the firm’s property portfolio to more than £50 million.

REI chief executive Mr Bassi said: "We are perfectly positioned to capitalise on the evident market downturn in commercial property and despite the existing credit crunch, we have cash, attractive bank facilities and over £20 million unencumbered quality property assets to enable us to continue to grow.

"We continue to believe in property as an asset class and the West Midlands region, we intend to invest up to £100 million in the region in 2008 and remain confident about occupier demand and rental growth.

Mr Bassi, who the largest shareholder in REI, added: "This is the second prime city centre freehold acquisition this year and we remain fully focused on further city centre opportunities."

Meanwhile, Mr Bassi announced his sixth share purchase of the year in REI, purchasing a further 950,000 shares at 10.75p to give him a total of 61,604,493 shares, representing 18.08 per cent of the issued share capital of REI.

He said it represented a further sign of his faith in the West Midlands market as the latest property purchase is one of a number of acquisitions REI has made within a 25 mile radius of his West Bromwich base.

REI has already acquired property worth around £20 million in the region so far this year, including Avon House, Bromsgrove; Guardian House in West Bromwich; Latitude in Digbeth and 102-106 Colmore Row, Birmingham.

Mr Bassi said: "We remain committed to building shareholder value by investing in the marketplace we understand best.

"We are still on the lookout for further acquisitions and have by no means closed the book on 2007 yet."

Birmingham commercial property consultants GBR advised REI on the Waterloo Street acquisition.