Issue of Equity

Real Estate Investors PLC
07 January 2005


Real Estate Investors PLC


("REI" or the "Company")


Issue of Equity


REI, the fast expanding commercial property investment company which floated on
AIM in June 2004, announced on 22 November 2004 that it had exchanged
conditional contracts to acquire the entire ordinary share capital of 3147398
Limited (formerly known as Bacchus Estates Limited), which owns thirteen retail
and A3 leisure trading properties, for which a total consideration of £9,000,000
has been paid.


Following completion of the acquisition on 6 January 2005, the Company announces
the issue today of 5,853,658 new ordinary shares in REI at a price of 10.25p per
share to the vendors as part of the consideration.


Application has been made for these new shares (which will rank pari passu with
the Company's existing issued ordinary shares) to be admitted to trading on AIM
and this is expected to take place on 13 January 2005.


Further information:

Peter Lewin - CEO                                                 01923 776633
Malcolm Lewin - FD
Real Estate Investors PLC

Christopher Joll                                                 020 7491 7776
mj2 ltd


7 January 2005






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