REI announces new rental income stream

Its Bond Wolfe business has secured a letting to P & Tech Solution to take 15 Bridge Street in Walsall on a five-year term at £12,500 per annum.

Two deals sealed at The Market Shopping Centre, Crewe, has seen Select Clothing take Units 16 and 17 totalling 4,261 sq ft, on a three-year deal arranged by Scott Robertson of Creative Retail and Dan Turner of Jackson Criss.

The same duo was responsible for letting the 10,765 sq ft Unit A to the British Heart Foundation on a 10-year deal at £57,500 per annum.

At Jasper Square Retail Park, McDonalds has taken the 3,189 sq ft Unit D for 20 years at £55,000 per annum in a deal arranged by Matt Pegg of Creative Retail.

REI’s in-house team has concluded an agreement at Topaz Business Park near Bromsgrove with a significant concession on the rent to Ladies Fighting Breast Cancer Charitable Trust on a two year deal at £13,200 per annum for the 1,391 sq ft unit.

REI has also agreed a lease renewal for 4,550 sq ft on part of the first floor at Westgate House in Warwick, with Full Fat Productions signing a deal for three years at £50,000 per annum.

Paul Bassi, chief executive of REI, said: “The company announced in January 2024 that it would be undertaking an orderly strategic sale of REI’s portfolio over three years, disposing of assets individually or collectively, at or above book value, to optimise returns to shareholders.

“The pace of the disposal programme will be dictated by market conditions, with an initial focus on repaying the company’s debt. In the meantime, it is the board’s intention to continue paying a fully covered quarterly dividend.”

REI recently announced its half year figures which revealed the business had completed or contracted on £8.3 million of property in the first half of 2024 to the end of June, with a further £5.1 million of disposals since the half year end.