Birmingham financier Paul Bassi has again gone shopping for shops.
Real Estate Investors, the AIM-listed investment company he heads, has added to its portfolio with the purchase of a retail parade in Kings Heath.
REI has exchanged contracts to purchase 2-30 Alcester Road South from Rockspring Property Investment Managers for £4.15 million in cash.
The unbroken parade of 16 units currently provides a rental income of £391,600 per annum, with tenants including Lloyds Chemist, Lunn Poly, The Post Office, Barnardo’s, Oswald Bailey, PDSA and WH Smith.
Earlier this year REI acquired 1-27 Bridge Street, Walsall, for £2.4 million in cash – an unbroken parade of 12 units – and York House in Birmingham city centre for £4 million in cash
REI has been sitting on a war chest of £100 million and has been dipping into it where deals have appealed.
Mr Bassi said: “We continue to be in a strong position to take advantage of opportunities and are actively seeking further acquisitions to place ourselves in a strong position for when the market comes back. In the case of Kings Heath all the properties are let on institutional leases on full repairing and insuring terms, providing rental growth prospects and further asset management opportunities.
“We do not believe in sitting on our hands during a downturn. Where prices are attractive, locations are strong and there are interesting possibilities to build in growth, you will find us showing an interest. We take a long-term view on our investments.”
Earlier this month Mr Bassi increased his stake in REI, fuelling speculation that he is on the verge of taking control of the company.
Together with finance director Marcus Daly and other associated investors, he now holds just under 29 per cent of the shares. Once that holding reaches 29.99 per cent, they are obliged under Stock Exchange rules to buy the remaining shares and take the company private.
Mr Bassi is also co-founder and chairman of auctioneers Bond Wolfe and chairman of surveyors Bigwood.