Brexit, whichever way it goes, is another window of opportunity, according to Paul Bassi, chief executive officer of Birmingham-based Real Estate Investors plc (REI).
He said that whenever there was a crucial vote in the UK, whether it was the Scottish referendum, the General Election or the EU vote, it created doubts in the economy and hence in the commercial property marketplace.
“Every time there are periods of uncertainty, that is a window of opportunity for us,” he said.
REI goes into the summer armed with £70 million in cash and bank facilities, including a new five year, £30 million facility with RBS
He was speaking after REI reported record final results – record profits of £12.2 million, record contracted rental income, record occupancy levels, and record dividends.
He said: “Despite the economic and political ‘headwinds’, a highly volatile stock market, coupled with the Brexit debate and the Euro vote, which might deliver another buying opportunity, we anticipate that economic activity in the Midlands will remain positive and that investor and occupier demand will remain stable, especially as it is likely that interest rates will remain low throughout 2016.
“Property investment continues to provide investors with secure returns in uncertain and volatile periods and we therefore anticipate a positive property market going forward.”
He rates Birmingham as the number one UK hotspot in which to invest and said the development of the airport, Grand Central station, the coming of HS2 and HSBC, plus increasing employment meant that Birmingham was, in his opinion, still at the beginning of an upswing – and nowhere near the top.
He said places like London were starting to peak and they were seeing a lot of investment coming out of the capital and into the regions, looking for a good home.
“The regions, with the Midlands to the fore, offer better value and better opportunity for investors,” he said.
And he said that during 2016 REI would continue “sticking to its knitting”.
“Shops and offices, plus the occasional opportune residential deal, are where we invest.
“We are seeing great value on the High Street, where new occupiers including discount retailers, health foods, restaurants, bars and coffee shops are all contributing,” he said.
Building on the 33 per cent increase in the dividend announced in the recent results, he said REI was now moving to quarterly dividends.
“We are very optimistic about the future and we have deals in the pipeline at present that will continue to contribute to our growth,” he said.