Real Estate Investors plc (REI), the Birmingham-based property group, has acquired 24 Bennetts Hill, a prime city centre office and retail property, for £2.06 million.
The building, which is let to tenants including Punch Taverns, Specsavers and Zapaygo, produces annual rental of £235,000, a yield of 10.8 per cent.
It comprises basement, ground and five upper floors, incorporating a variety of original features, with the Sun on the Hill pub on the ground floor.
REI has also agreed the unconditional sale of land in Bilston, West Midlands, for £1.875 million, a price significantly above its book value.
REI chief executive Paul Bassi said that 24 Bennetts Hill provided a variety of asset management opportunities to enhance rental income and value.
“We also secured a number of lease completions prior to the year-end which will contribute to the company achieving record contracted rental income,” he said.
“These transactions, coupled with our conversion to a Real Estate Investment Trust on January 1, 2015, and a secure and stable property portfolio, leave REI well positioned to grow our rental income and continue with our progressive dividend policy throughout 2015,” he said.
Bond Wolfe acted on behalf of Blue Square Commercial. ESN Solicitors acted for the seller and Freeths Solicitors for the buyer.
The news follows last week’s announcement that REI had let the 6,600 sq ft ground floor of the former original Midland Bank building at 33 Bennetts Hill to Loungers Ltd, who will open a Birmingham branch of The Cosy Club café bar there in the Spring. The upper floor of offices is also under offer.