Midlands-based REI reports £26.9m sales in update

Birmingham-based Real Estate Investments has wound down its debt by around £20m through asset sales, despite enduring what it describes as one of the most challenging sales periods since the 2008 financial crisis.

In an update to markets issued this morning REI, which has a commercial property portfolio spanning 34 sites across the Midlands, said the firm experienced “transactional paralysis” which impacted its planned three-year asset sales plan during the second half of the year, caused by what is says was the uncertainty in the lead up to the UK budget in November.

Despite the market backdrop, REI made sales of £18.9m in 2024 and a further £8m of sales in 2025, reducing the firm’s drawn debt to £34.3m at 31 December 2025, down from £54.4m on 1 January 2024.

Year-end occupancy at the company’s 34 sites was 78.7%, down from 82% in the previous year, which it says was mainly due to known lease events and a number of unexpected tenant CVAs and insolvencies – including the collapse of River Island.

Contracted rental income at the year-end was £8.3m per year, down from £9m in 2024.

“Despite one of the most challenging transactional markets for UK real estate over the last two years, we have continued to progress our orderly sales programme,” said Paul Bassi, Chief Executive.

“With the budget now behind us, interest rates easing and a healthy pipeline of disposals and lettings, we are cautiously optimistic about improving market conditions in 2026.

“The Board is heavily invested in the business and firmly aligned with the best interests of shareholders. Whilst the focus remains on delivering the disposal strategy within the stated three-year timeframe, including debt repayment and returns of capital to shareholders, we will consider an extension if absolutely necessary, to maximise shareholder value.”

Final results for the year are expected to be issued in March.