Real Estate Investors plc, the Birmingham-based property group and AIM-listed real estate investment trust has announced two major agreements.
The company has announced a major new letting in Leicester and boosted its coffers with a new £30 million banking facility.
Bellrock FM has leased 21,715 sq ft at Peat House in Leicester city centre – the deal means the building is now almost fully let with other tenants including KMPG and Weightmans Solicitors.
The space was let on a new ten year lease at £282,295 per annum and this latest deal means Peat House is now producing £494,130 per annum with an estimated rental value of £562,835 per annum.
During 2015 REI’s contracted rents have risen to £11.9 million at the year, up 54.4 per cent (2014: £7.7 million).
Additionally the company has agreed a new £30 million, five year term loan facility with Royal Bank of Scotland, on an interest only basis, secured against part of the company’s unencumbered property portfolio.
REI chief executive officer Paul Bassi said: “Our contracted rents have seen excellent groth during 2015, and with our acquisition pipeline and improvement in occupier demand, we anticipate further growth during 2016, which will support our ability and 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 £200 million during 2016, subject to opportunistic sales.”
