Real Estate Investors (REI), the Birmingham-based, AIM-listed real estate investment trust, has acquired the freehold of a major business park close to Junction 1 of the M42 in Worcestershire.
REI has paid £4 million for Topaz Business Park which comprises ten high specification modern units totalling 44,700 sq ft.
The investment produces a current rental income of £286,812 per annum and is multi-let to seven tenants including QS Finance, Prestige, M V Kelly, Handelsbanken, Fuelsoft, Toshiba and Instinctive Technologies.
The park is a low density development with 174 parking space and offers prospects for further development on part of the site.
Paul Bassi, chief executive officer of REI, said: “This latest acquisition complements our existing holdings at Bunsford Gate, Bromsgrove, and shops and offices in Bromsgrove town centre.
“This new acquisition provides a good mixed income profile, with scope for asset management opportunities to increase rental performance and average unexpired lease term due to the lack of good quality office stock available in the catchment office market.
“We are actively seeking to acquire further investments in Bromsgrove and the surrounding area to add to our existing portfolio of over £200 million of Midlands real estate.
“We have a number of additional acquisitions in our pipeline and anticipate completing these shortly,” he said.
On Topaz Business Park, REI were advised by law firm CBTC Millichips and agents Harris Lamb advised the vendor Maximus Developments.
In March, REI reported an impressive set of financial results for the year to 31 December 2017.
Pre-tax profits were £11.3 million, up 37.8%, and underlying profits up 19.2% to £6.2 million. Revenue was up 10.4% to £14.9 million with contracted rental income up 8.7% to £16.2 million.
REI has also increased its dividend payment for five consecutive years, rising a further 19% in 2017, with a final dividend of 0.875p.