Dividend paid as Real Estate Investors moves back into the black
West Midlands-based commercial property company Real Estate Investors has rebounded into the black, unveiling pre-tax profits of £1 million a year after revealing losses of £6.7m.
The company, headed by Black Country property tycoon Paul Bassi, also announced it is paying its first dividend to shareholders.
Mr Bassi, who lives in Stourbridge, also owns West Bromwich property company Bond Wolfe.
Highlights include overall occupancy levels up to 86.5 per cent and contracted rental income up 19 per cent to £6.6 million.
Mr Bassi, REI's chief executive reported that 51,623 sq ft of lettings were completed in 2012, adding £700,000 rent per annum.
REI now has gross property assets valued at £77.4 million, up nine per cent on the 2011 figure of £71.2 million. The IPD Monthly Index All Property declined by 4.2 per cent over the same period.
During 2012 REI made three acquisitions totalling £6.5 million and sold land in Birmingham for £350,000, some 22.4 per cent above book value.
Mr Bassi said: "I am delighted to report our results for the year in which we made profit before tax of £1,065,000, and paid our inaugural dividend of 0.5 pence for 2012."
Despite a fragile economic backdrop REI, he said, was now seeing a significant improvement in occupier inquiries and, for the first time in five years, an improving investor market.
