Midland property investor Paul Bassi has bucked market sentiment by plunging into the stock market and increasing his shareholding in AIM-listed Real Estate Investors (REI).
He is chief executive of the firm, which is Birmingham’s only quoted property investment company, specialising in commercial property in the West Midlands and central England.
He now holds 22.13 per cent of the issued share capital of REI, having acquired 3,000,000 ordinary shares of 1p each at a price of 9p per share from the company’s chairman Peter Lewin. REI’s shares are currently trading at 9.75p on AIM.
His investment comes at a time when REI is sitting on a war chest of £100 million and the company is actively on the acquisition trail.
Already this year it has acquired 1-27 Bridge Street, Walsall, for £2.4 million in cash – an unbroken parade of 12 retail units with a mixture of retail, financial and professional services and bar occupiers.
The rent of £200,150 per annum represented an initial yield of around eight per cent.
Tenants include Swinton Insurance, Subway, Jayman Estate Agents and a number of other established retailers. The parade is in the heart of Walsall town centre, which is presently subject to substantial regeneration.
Paul Bassi said: “REI is particularly well placed to take advantage of current market conditions.
“The Walsall acquisition is consistent with our strategy of acquiring assets within the West Midlands, to which we believe we can add value.
“This purchase further confirms the market opportunity to acquire assets producing higher yields that have been experienced in the last few years.
“We are also in advanced discussions on a number of other investment opportunities at attractive yields, offering considerable asset management and capital enhancing opportunities."
