Real Estate Investors PLC
('REI' or the 'Company' or the 'Group')
Letting & Finance Update
Strong increase in contracted rents in 2015
New £30 million, 5 year term loan facility
Real Estate Investors plc (AIM : RLE), the Birmingham based property group and UK listed Real Estate Investment Trust, announces a successful letting at Peat House in Leicester City Centre. Bellrock FM has leased 21,715 sq ft on a new 10 year lease at £282,295 net p.a., the building is now almost fully let producing £494,130 p.a., other tenants include KPMG and Weightmans Solictors with an ERV of £562,835.
During 2015 contracted rents have risen to £11.9m at the year end, up 54.5% (2014: £7.7m).
Additionally, the Company has agreed a new £30m, 5 year term loan facility with Royal Bank of Scotland, on an interest only basis at a margin of 1.75% over LIBOR, secured against part of the Company's unencumbered property portfolio.
Paul Bassi, CEO of REI said "Our contracted rents have seen excellent growth during 2015, and with our acquisition pipeline and improvement in occupier demand, we anticipate further growth during 2016, which will firmly support our commitment to continue to grow our dividend payment.
"The new bank facilities, together with existing cash, provide the capital to secure properties from our known pipeline, and grow our portfolio to in excess of £200m during 2016, subject to opportunistic sales."
Ends
Real Estate Investors plc Paul Bassi |
+44 (0)121 212 3446 |
Smith & Williamson Corporate Finance Limited Azhic Basirov/David Jones |
+44 (0)20 7131 4000 |
Liberum Jamie Richards/Tom Fyson |
+44 (0)20 3100 2000 |
Gable Communications Limited John Bick |
+44 (0)20 7193 7463 +44 (0)7872 061007 [email protected] |
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted property investment company with a portfolio of over 1,000,000 sq ft of commercial property managed by a highly experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.
The Company's strategy is to invest in well located, real estate assets in the established and proven markets of central Birmingham and the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings. The portfolio has no material reliance on a single asset or occupier.
On 1st January 2015, the Company converted to a Real Estate Investment Trust (REIT). Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities.
The Company aims to deliver capital growth and income enhancement from its assets with the view to implementing a progressive dividend policy. Further information on the Company can be found at www.reiplc.com.
