West Midlands-based property company Real Estate Investors is predicting good rental growth this year on the back of an improved regional economy.
The optimistic outlook came as REI issued a pre-close trading update for the year ended December 31.
The group completed significant lettings during the second half, with a strong pipeline for 2014.
The update highlighted latest figures showing the annual take-up of office space in Birmingham in 2013 was 664,147 sq ft, an increase of almost 33 per cent on 2012 figure, and “pointing the way for a better 2014”.
REI chief executive Paul Bassi said: “We are experiencing an improving regional investment and occupier market, and saw an excellent year of progress in 2013, when we increased our dividend by 100 per cent.
“During 2014/15, we anticipate continued activity across our portfolio, capitalising on our market reputation and knowledge with further opportunistic acquisitions, sales and lettings. Our portfolio remains stable, secure and full of capital and income enhancing opportunities.
“With improved demand and almost zero new supply, we anticipate good rental growth and look forward to 2014/15 with optimism, with the view to a continuation of our progressive dividend policy. In 2014 we intend to move to a more normal dividend payout strategy, with twice yearly payouts post the interim and full year results.
“A number of additional lettings have also completed and the company has a strong pipeline going into 2014,” stated the company’s update.
It is anticipated that the final results will be announced in March.