Real Estate Investors sells Birmingham property, announces Leicester letting

Midlands focused property group Real Estate Investors has sold 24 Bennetts Hill, Birmingham, for a cash consideration of £4m and completed a major letting in Leicester.

The company said the Bennetts Hill sale represents a premium to book valuation and a 5.90% net initial yield. The investment property was acquired by the group in December 2014 for £2.06m.

REI has also completed a letting of 14,291 square feet in Peat House, Leicester, which is a prime city centre office building. It is now fully occupied and producing a total rental income of £573,466 a year, with occupiers including everythingbranded.co.uk, Bellrock FM, Innes England and KPMG.

Chief executive officer Paul Bassi said: "We are delighted to complete this sale having added significant value through asset management, and our Peat House asset is now fully let which completes an excellent year of activity where we have been active as a buyer, seller and transacted significant lettings. We have achieved a record occupancy throughout the portfolio of 95%, which will provide the foundation for further dividend growth in line with the Company's stated progressive dividend policy.

"Our market reputation, available capital and banking facilities, will allow the company to capitalise on market opportunities in 2018 and continue to grow our property portfolio."

At 1040 GMT, the shares were up 1.3% to 59.25p.