Birmingham-based property group Real Estate Investors (REI) has acquired the Walsall home of household names such as Superdrug and Burton for £7.7 million.
The deal to acquire 59/75 Park Street from Scottish Widows has pushed the value of the company's portfolio to more than £100 million in gross assets.
The property produces a rental income of £814,312 per year and tenants also include Wallis, BHS and Waterstones.
The acquisition is high yielding with a weighted average unexpired lease term of just over five years with opportunities to add further value from lease renewals and rent reviews.
This is the latest in a long line of deals this year for AIM-listed REI which is also looking to build a new restaurant in the former home of Midland Bank in Birmingham city centre.
Chief executive Paul Bassi said today: "With this latest acquisition, our gross assets now exceed £100 million, predominantly acquired during the property and financial market downturn.
"The portfolio is diverse, with active asset management opportunities and is now benefiting from an improved property market.
"I anticipate an excellent year with record gross property assets, contracted rental income and dividend pay-out to our shareholders."
REI was represented by Knight Frank in Birmingham and Clark Brookes Turner Cary Solicitors. The vendor were advised by Jackson Criss and Addleshaw Goddard.
