Acquisition

5 February 2007

                            Real Estate Investors plc
                            ("REI" or the "Company")

                              Property acquisition


Real  Estate Investors plc (AIM: RLE), the West Midlands based property company,
is  pleased to announce that it has exchanged contracts on its first acquisition
since  the £25 million fundraising in December 2006 and the appointment of  Paul
Bassi as Chief Executive four weeks ago.

The  transaction relates to the freehold of 102 - 106 Colmore Row, 1-6 Bennett's
Hill in Birmingham.

The  property  consists of approximately 30,000 sq. ft.  of  prime  city  centre
offices.  The  period offices are located directly opposite  the  Natwest  Tower
Scheme  which  was  recently acquired by British Land  for  redevelopment.   The
property is currently part-let and generates income of £200,000 per annum.

The  premises will be fully refurbished, following which the Company anticipates
achieving  full occupancy and significant rental and capital growth.  There  has
already been interest expressed in the void space.

Consideration for the acquisition was £6,350,000. The property was purchased off-
market  and  was funded from the Company's cash resources. Jones Lang  La  Salle
Birmingham   Office  advised  the  vendor,  The  Prudential  and  GBR   Property
Consultants represented REI.

Paul  Bassi  commented:   "I  am  delighted that we  have  completed  our  first
acquisition  so soon after our recent fundraising. This acquisition provides  us
with  prime  office accommodation in Birmingham's City Centre and is  consistent
with  our  stated strategy of acquiring part-let property, adding value  through
active  management, refurbishment and further lettings. This is the first  major
step  in  our ambitions to create a substantial Central England-focused,  listed
property company."


Enquiries:

Real Estate Investors plc               [phone]
Paul Bassi

Powerscourt Media Limited               [phone]
Victoria Brough/ Claire Melly

Ends.

Notes to Editors

1. REI  is  an  AIM  listed  property  investment  and  development  company
   specialising in commercial property throughout the Midlands and Central England
2. REI  is  focused on delivering shareholder value through returns generated
   from  strong  yields and capital enhancements. This is achieved by  targeting
   investments in orphaned, distressed, part-let and underperforming  commercial
   property assets
3. REI's Board is led by respected property-entrepreneur Paul Bassi, who has
   over 23 years of property experience. Mr Bassi is also founder and chairman of
   Bond Wolfe Auctioneers, one of the UK's largest (top 50) property auction houses
   and estate agents, and chairman of Bigwood Chartered Surveyors
4. REI  was  admitted  to trading on AIM in June 2004  and  currently  has  a
   portfolio of commercial property assets with an estimated value of approximately
   £28  million.  In  December  2006, REI successfully  raised  £25  million  to
   aggressively grow its property portfolio. Paul Bassi is the largest shareholder
   in the Company
5. Further information on REI can be found at www. reiplc.com