Acquisition

12 September 2008
                            Real Estate Investors plc
                            ("REI" or the "Company")

                            Acquisition of York House

Real  Estate Investors plc (AIM: RLE), the West Midlands based property company,
is  pleased  to  announce  that it has unconditionally  exchanged  contracts  to
acquire  York House on the corner of Great Charles Street and Newhall Street  in
central Birmingham for the sum of £4 million in cash.  The acquisition is due to
complete on  28 September 2008.

The  property  comprises over 22,000 sq ft on basement, ground  and  five  upper
floors.  The total passing rent is £261,000 per annum providing the Company with
an initial yield of 6.5%, rising to 9% plus when fully let.  The tenants include
Endsleigh  Insurance  Service, Capita Symonds,  Ibex,  ATA  Group  plc  and  the
National Deaf Childrens Society.

In  addition, the Company is pleased to announce that it has completed a  number
of new lettings to include Café Nero, Vantis plc, Adroit Construction and United
Business Centres plc Further details of all these lettings can be found  on  the
Company's website.

Additionally,  the  Company has sold an investment property in  Cornfield  Road,
Eastbourne for the sum of £682,000.

Paul Bassi, Chief Executive, commented:

"The  York House transaction complements other office investment acquisitions  -
Cathedral Place where we are undertaking a £1.5 million refurbishment  which  is
already  part let to Caffe Nero and our recent purchases at 102-106 Colmore  Row
and 6 Bennett's Hill."


Enquiries:
Real Estate Investors plc                                    [phone]
Paul Bassi

Smith & Williamson Corporate Finance Limited                 [phone]
Azhic Basirov / Siobhan Sergeant

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.  In December 2006,  REI
   successfully raised £25 million to aggressively grow its property portfolio, at
   that time, estimated to be worth approximately £28 million.  Paul Bassi is the
   largest shareholder in the Company
5. Further information on REI can be found at www. reiplc.com