The 6,000 sq ft properly is home to big retail names including Boots Opticians, Thorntons, Smart Ideas and Loritas Bakery.
With a rental income of £114,220 per annum, the purchase represents a net initial 8.45%.
Paul Bassi, REI chief executive officer, said: “This is an excellent addition to our portfolio, offering scope to add further value from lease extensions and re-letting of the upper parts and unused ancillary space, which will provide us with capital growth and a strong running yield.”
Assessing the wider trading position, he continued: “More generally, the property portfolio is performing well.
“We are seeing an improved regional investment market and we anticipate further sales in the current quarter on properties upon which we have completed our asset management initiatives.
“We have several ongoing sales and acquisitions in our legal pipeline, with a healthy addition of new lettings and lease renewals from within the existing portfolio, which will enhance rental income and our average lease lengths.
“In addition, the company has significant additional capital from rental income, property sales and bank facilities to continue to grow the portfolio and generate additional rental income to support our dividend growth. while retaining a portfolio in the region of £200 million.”
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