Real Estate Investors plc (REI) has increased its investment in Royal Leamington Spa with the purchase of another fully-let prime retail acquisition in Leamington Spa.
The Birmingham-based, AIM-listed company recently acquired a mixed use block on The Parade, Leamington Spa for £7.45 million.
Now REI has unconditionally exchanged contracts on a further 10,228 sq ft at 53-57 The Parade for a price of £1.8 million, generating a net initial yield of 8.45%.
The property consists of basement, ground and three upper floors and is fully let to four tenants, including Telefonica UK Ltd trading as O2 and Toni & Guy (South) Ltd trading as Toni & Guy.
The investment currently produces £161,200 rental income per annum.
Paul Bassi, chief executive of REI, said: “This latest acquisition increases our holdings in Royal Leamington Spa and is an excellent addition to our portfolio, located at the heart of the town centre.
“The investment is multi-occupied with a diverse tenant line-up in line that complements our existing portfolio mix. This purchase takes our contracted rental income to £17.65 million, up 3.8%, since the year ending 31 December 2018.
“Our portfolio continues to trade well, with occupancy at 96% and with continuing asset management, and we remain committed to investing in the region where we believe there are good opportunities that will enhance income and capital values.