Issue of Equity

Real Estate Investors PLC
31 May 2005





Issue of Equity

Real Estate Investors PLC ("REI" or "the Company") announced that on 18 February
2005, it entered into a conditional agreement to purchase five freehold,
commercial properties for a total consideration of £3,499,320. The agreement
provides for the consideration to be paid as to £3,284,388 in cash and the
balance by the issue to the vendors of 1,999,367 new 1p ordinary shares in the
Company, at 10.75p per share.

Following completion of the acquisition on 27 May 2005, the Company announces
the issue on that date of 1,999,400 new ordinary shares in REI at a price of
10.75 per share to the vendors as part of the consideration.  As a result, KBR
Property Investments Limited will have a beneficial interest in 1,255,000
ordinary shares representing 3.03% of the issued share capital of the Company.

Application has been made for the 1,999,400 ordinary shares (which will rank
pari passu with the Company's existing issued ordinary share capital) to be
admitted to trading on AIM and this is expected to take place on 6 June 2005.

31 May 2005






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