Listed property group Real Estate Investors has acquired a trio of West Midlands buildings for £22.2 million.
Paul Bassi's Birmingham-based company has bought Birch House in Oldbury, which is let to Npower, and 1-2 Albion Parade in Kingswinford which is home to the Midcounties Co-operative Society.
Making up the purchases is a group of buildings in Tunstall which are let to Matalan, Argos, Next, Shoezone and Pizza Hut.
READ MORE: {}
It said in a statement to the stock exchange today the acquisitions provided a net initial yield of 8.22 per cent with a weighted average unexpired lease term of 8.49 years.
The properties produce a total annual rental income of £1.93 million and provide a number of asset management opportunities including rent reviews, lease renewals and planning consent.
Additionally, the firm has sold Arden House in Acocks Green, a vacant 20,000 sq ft office building for £760,000 which it said was a substantial increase above acquisition cost.
The proceeds of the disposal will be used for further acquisitions in due course and the company's general working capital purposes.
Mr Bassi said: "These latest acquisitions provide a number of asset management opportunities and generate quality rental income that will support our progressive dividend policy.
Most Read
"We continue to benefit from a vibrant Midlands economy and a much improved occupier market, against a backdrop of strong valuations for occupied investment property.
"Prime Birmingham city centre has seen significant yield compression and we are beginning to see similar pressure on property values throughout the region, in particular in prime locations in town centres and well let modern office schemes.
"Our acquisition pipeline remains strong and our market reputation and ability to transact expediently in respect of criteria compliant opportunities ensures we remain on track to deliver a £200 million property portfolio in the Midlands."
REI was advised by Baldev Kang of solicitors Clark Brookes Turner Cary and property agencies Bond Wolfe, Knight Frank and GBR Phoenix Beard.