Financing Update

25 January 2008

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

           Update on financing and further planned property investment

Real  Estate  Investors plc (AIM: RLE), the quoted property  investment  company
specialising  in  commercial property in the West Midlands and central  England,
announces  that  following  a  refinancing of part  of  its  debt-free  property
portfolio  it  has released £20 million which, together with existing  cash  and
bank   facilities,  provides  the  Company  with  total  available  funding   of
approximately £100 million for further investment in commercial property in  the
Midlands.

Bank of Scotland has made available two loan facilities totalling £20 million to
the  Company.  The one facility, for £10 million, is fixed for 10 years  with  a
base  rate of 4.95% (tracking LIBOR down to a minimum of 3.65%) and a margin  of
1.45% reducing to 1.35%.  Thereafter, the interest payable is fixed at 4.75% and
a  margin of 1.35%.  The other £10 million facility is a floating rate at  LIBOR
plus  a  margin of 1.5% reducing to 1.35% if certain conditions  are  met.   The
Company  would seek opportunities to fix this facility with any improvements  in
the money market.

REI  has  seen  an  increased  selling of commercial property  by  institutional
investors  at  prices significantly below book valuations in  order  to  release
funds for other purposes.  Against this backdrop, with the lack of liquidity  in
the market and banks' reduced appetite to lend to the property sector, there are
an  increasing  number  of opportunities for property investors  with  cash  and
secured bank facilities, such as REI, to capitalise on this downturn.

Paul Bassi, Chief Executive of REI said:

"Despite  the credit crunch and the reluctance of some banks to fund  commercial
property,  REI  has  been  able  to refinance part  of  its  debt-free  property
portfolio  and secure a significant level of funding to capitalise on commercial
property  opportunities in the present market.  REI is  bucking  the  trend  and
remains  committed to growing its investment base in the Midlands.  The property
fundamentals  of high occupancy demand and low interest rates provide  an  ideal
opportunity to acquire quality commercial property.

We  received  several offers of funding from banks to support our  strategy  and
decided to partner with Bank of Scotland with whom I have worked for a number of
years."

Steve George, Bank of Scotland area director for real estate, said:

"We have been in close dialogue with REI since Paul Bassi become Chief Executive
as  well  as on a number of transactions in the past for Bond Wolfe.  He  has  a
demonstrated track record and we fully believe in his strategy for the  Company.
Occupier  demand exists and there is potential to improve income  streams  where
properties acquired have been unloved by previous owners.

"Against  the  current background of market uncertainty, Bank of  Scotland  will
always support good propositions with the right borrowers."



Enquiries:
Real Estate Investors plc                                    [phone]
Paul Bassi

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

Editor's notes

1.Real  Estate  Investors  plc  ("REI")  is Birmingham's  only  quoted  property
  investment  company, specialising in commercial property in the West  Midlands
  and central England.

2.The  REI  board  is  led  by Paul Bassi, who is also chairman  of  Bond  Wolfe
  Auctioneers and vice-chairman of Bigwood chartered surveyors - who are in  the
  top 50 UK estate agents.

3.Through  his private company Bond Wolfe Assets, Midlands investor  Paul  Bassi
  owns  20.47 per cent of REI and has continued to purchase shares in the  group
  throughout 2007 and into 2008.

4.Further information is available on www.reiplc.com