Real Estate Investors, the quoted vehicle of Midlands property specialist Paul Bassi, has jumped into profit after reporting a 13 per cent rise in the value of its assets.

The Birmingham-based company posted a pre-tax profit of £4.3 million, compared to a loss of £15.7 million in 2008.

The group reported gross property assets were valued at £54.8 million, compared to £48.5 million at the end of the last financial year.

It also saw a rise in rental income of eight per cent, to £3.2 million.

Chairman Peter Lewin said the company was in good shape, especially after a recent announcement it had raised more than £10 million to take advantage of knock-down prices in the sector.

He said: “I stated last year that these unprecedented market conditions would reveal winners and losers and I firmly believe that the company, with the recent fundraising, coupled with its existing cash, banking arrangements, experienced and focussed management team, has a very positive outlook for 2010, revealing REI to have a winning business and strategy.”

Birminghampost.net reported in January that REI planned to use the £10.1 million placing “to provide additional resources to take advantage of depressed values in the West Midlands property market”.

Its cash war chest is now in excess of £20 million plus agreed banking facilities. The company said it was targeting “attractive valuations” and was in discussions on a £100 million pipeline of opportunities.

The group saw a slight fall in the amount of cash in the bank, to £10.8 million from £11.4 million, after total acquisitions of property in the year amounted to £2.8 million.