Oxford-based Real Estate Investors is buying five individually owned properties in a cash and shares deal worth £3.5m.
REI, which is the new quoted vehicle of former Newport chief executive Peter Lewin, will pay £3.28m in cash and pay the balance in an issue of 1,999,367 ordinary shares at 10.75p per share.
The retail, industrial, office and leisure properties are located in Wakefield, Devon, Manchester, Portsmouth and Newport and comprise retail, industrial, office investments, all let on institutional leases.
The tenants include Whitbread, JJB Sports, J Coral and Barclays Bank. On completion of outstanding rent reviews, rental income from the portfolio will be approximately £250,000pa.
Peter Lewin, Chief Executive of REI said: "Quality investments, let to strong tenant covenants, are the backbone of our business.
"These five properties meet our strict investment criteria and are an important addition to our growing portfolio which, on completion of recent acquisitions, will have a value of approximately £20m."
References: EGi News 22/02/05
