LONDON: Real Estate Investors Plc announced the acquisition of a fully-let, prime, mixed-use block on The Parade, Royal Leamington Spa, for £7.45 million, generating a net initial yield of 8.05%.
Real Estate Investors is the London Stock Exchange listed Real Estate Investment Trust (REIT) with a portfolio of 1.53 million sq. ft. of commercial property in the Midlands property market across all sectors.
The property, which includes twelve units, produces £639,500 p.a. with a current WAULT of 2.8 years to break and 5.5 years to expiry. Comprising 31,660 square feet of prime space in a prosperous Warwickshire town centre, this is a popular shopping destination let to well-known tenants including: McDonald’s, Tiger UK, Moss Bros, Timpson Limited, Oxfam, Clydesdale Bank, Savers Health and Beauty, and EE.
Paul Bassi, Chief Executive commented: “This is an excellent strategic addition to our portfolio, increasing our exposure to this affluent town, located at the heart of the London to Birmingham ‘Warwickshire corridor’. Royal Leamington Spa is a prime commuter belt town offering excellent quality of life, exceptional schools and universities and impressive Regency, Georgian and Victorian properties at affordable prices. These factors are attracting migration from London, with 3200 new homes expected by 2024, which will bring an influx of affluent families, enhancing both residential and prime retail values.
This prime investment is multi-occupied with a diverse tenant line-up and provides asset management opportunities to increase capital and rental income. It takes our contracted rental income to £17.5 million which is up 2.88% in the current financial year.
Our portfolio continues to trade well, with embedded asset management opportunities that provide us with the ability to continue to enhance income and capital values organically.
The Midlands is a growth market within which we are uniquely connected and together with our existing cash and bank facilities this makes us ideally placed to make further selective acquisitions during this period of political and economic uncertainty.”