Birmingham-based Real Estate Investors (REI) will have a war chest of £50 million in 2017 following the sales of two non-core retail properties in Crawley and Norwich, which have accumulated a total of £2.75 million and boosted next years’ funds.
The commercial property sector within the region has been very strong recently, which is the biggest contributing factor towards the success of the deals, as the markets have become a lot stronger specifically in the final quarter of the year.
Paul Bassi, the chief executive at REI, commented, “We have received a number of unsolicited approaches for certain assets and we will look to recycle this capital into criteria-compliant acquisitions, where there is scope for further asset management, income and capital enhancement in the first half of 2017.”
It had been reported a short while ago about REI’s acquisition of 62 to 68 High Street in Bromsgrove, which included big name brands such as Thorntons, Boots Opticians, Loritas Bakery and Smart Ideas, so this is just more good news for the AIM-listed company in what has been a fantastic year for the team.
“REI remains focused on its investment criteria, and with significant cash and bank facilities, remains well positioned to capitalise on any opportunities that may become available as Brexit discussions continue, while maintaining a £200m-plus portfolio” Bassi continued. “Our rental income has expanded progressively over the last few years and we anticipate further gains from asset management initiatives that will support the growth of dividend payments in line with our progressive dividend policy.”
The future certainly looks bright for Real Estate Investors, and the company is optimistic about its prospects in 2017, following the strong economic performance of 2016 which saw this particular region significantly out-perform other regions around the UK in terms of its commercial property sector.