REI launches £100m regional fund

Real Estate Investors (REI), the AIM-listed group headed by West Midlands property entrepreneur Paul Bassi, has launched a £100m regional vulture fund.   The fund is to target assets in the Midlands that are being off-loaded by open-ended property funds with liquidity problems.   Chief executive Bassi said that funds including Scottish Widows, Norwich Union, New Star and Aegon are under taking fire sales in the region to release funds to their policy holders.   REI has refinanced its debt-free portfolio to raise £20m from the Bank of Scotland to provide a total war chest of £100m.   Through his private company Bond Wolfe Assets, Bassi owns 20.5% of REI.   Bassi said: “REI remains committed to growing its investment base in the Midlands. The property fundamentals of high occupancy demand and low interest rates provide an ideal opportunity to acquire quality commercial property.   “Additionally, we have a very volatile stock market and I believe that investors will return to the stability and safety of quality bricks and mortar.”   chris.bourke@rbi.co.uk