West Midlands property group Real Estate Investors has announced a major letting to wealth management company AFH Financial Group.
It came as AIM-listed REI, led by chief executive Paul Bassi, who is also Non Executive chairman of Black Country agency Bond Wolfe and auctioneers CPBigwood, unveiled to the Stock Exchange a string of other deals and that demand was picking up.
AFH Financial Group has leased 14,446 sq ft at Avon House in Bromsgrove.
It is for a term of 11 years, with a tenant break in September 2018, at a commencing rent of £173,352 per annum and rising to £202,244 pa at the first review.
AFH Financial Group is a growing team of independent financial advisers, founded 21 years ago by chartered financial planner, Alan Hudson. It has 110 people, including 65 professional advisers, with referrals coming from solicitors and accountants plus a large provincial building society. It combines traditional IFA services with discretionary investment management and stock broking.
Avon House is now fully let, achieving its estimated rental value (ERV).
In a second significant move REI stated: “Following discussions with planning consultants, the company will be submitting a planning application for a 40,000-50,000 sq ft food store in Southgate, Derby.”
REI first invested into the area last year acquiring Southgate Retail Park for £4.8 million from TAP Property.
The statement said the company had further “secured a number of other lettings and sold additional residential development sites at valuations above December 31, 2011, book values”. It did not offer an individual break-down.
But it went on: “The company is in advanced discussions to acquire a number of properties that meet its asset management, capital growth potential and yield profile.
“Occupancy and rental income remain secure and stable with improving demand from occupiers.”
Late last year REI agreed a £20 million revolving credit facility with Lloyds Banking Group, running to October 2014, and on terms similar to its previous one.
Mr Bassi said then that the business remained “well positioned to capitalise on further market opportunities”.
