Birmingham investors add to portfolio
A Birmingham-based commercial property investment company has acquired two more office buildings as part of a recent multi-million spend.
Real Estate Investors plc (REI) has announced that is has purchased three properties in transactions totalling more than £13m. Along with the purchase of Southgate Retail Park in Derby, REI has acquired two office-based schemes. The rental income from the buildings will increase the annual rent roll of REI to approximately £6.1m, a figure up 50% since the start of 2011.
REI has purchased Peat House (pictured – credit) from Aviva for £4.4m. Peat House is a prominent, Leicester office building that is fully-let to KPMG. The building offers approximately 43,400 sq ft of floor space over five floors and is let until 2015. The annual rental income of £510,225 equates to an approximate rental price of £11.75 / sq ft.
REI has also acquired a mixed-use building in Birmingham city-centre. Gateway House, also sold by Aviva, is a 27,000 sq ft property offering retail and office floor space. Purchased for £3.85m, the annual rental income for the seven-storey building amounts to £624,000 but this will rise once a tenant is found for an unoccupied office suite of just over 4,000 sq ft on the sixth floor.
REI now has several Birmingham-based office schemes in its portfolio including Cathedral Place, the former headquarters of the Birmingham Midshires Building Society. REI itself now occupies the third floor of the 13,000 sq ft building. Commenting on the latest acquisitions, Paul Bassi, CE of REI said: “These properties are prime, high quality ex-institutional assets that provide good rental income and significant scope for asset management initiatives that will enhance capital values.”
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