Issue of Equity

Real Estate Investors PLC
11 March 2005


Real Estate Investors PLC

("REI" or the "Company")

Issue of Equity

REI announced on 24 February 2005 that it had exchanged unconditional contracts
to acquire the freehold interest in a town centre retail investment in Hemel
Hempstead, Hertfordshire, comprising a retail shop, with self contained office
accommodation above, totalling 4,250 sq ft in floor area. The total
consideration was £1,085,000.

Following completion of the acquisition on 9 March 2005, the Company announces
the issue on that date of 1,450,980 new ordinary shares in REI at a price of
12.75p per share to the vendors as part of the consideration. As a result, Mr
Terence Grubb and IPM Trustees Limited, as trustees of The Micro Precision
Pension Scheme (1991), have a beneficial interest in 3.69% of the issued share
capital of the Company.

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 17 March 2005.

Further information:

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

Christopher Joll                                                 020 7491 7776
mj2 ltd

11 March 2005



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