Real Estate Investors plc (REI), the Birmingham-based property group has unconditionally exchanged contracts to acquire a major Warwick commercial property.
REI will pay £7.25 million in cash for Westgate House on Market Street in Warwick town centre.
The purchase is the latest in an acquisition programme that has seen REI spend almost £16 million so far this year.
The prominent retail and office investment, totalling 56,608 sq ft, currently produces a rental income of £631,l325 per annum and tenants include Boots UK Ltd, Marks and Spencer, Simply Foods Ltd and NHS Property Services.
REI chief executive Paul Bassi said: “Westgate House is an excellent addition to our portfolio, offering scope to add further income from letting void space and re-gearing existing leases, which combined will provide us with capital growth and strong running yield.
“More generally, REI’s portfolio is performing well. We are seeing a substantially improved regional investment market and we anticipate further sales in the fourth quarter of the year on properties on which we have completed our asset management initiatives.”
The announcement follows on from news earlier in July that REI had sold Cathedral Place in Birmingham to Canada Life for £4.606 million.