Issue of Equity

20 December 2006

   Not for release, publication or distribution in or into the United States,
                           Canada, Japan or Australia

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

             Completion of £25 million fundraising and Board changes


Introduction

The  Board of Real Estate Investors PLC (AIM: RLE) announces that it has  raised
£25  million through the issue of 250,000,000 ordinary shares of 1p each in  the
capital  of  the  Company at 10 pence per share (the "Placing  Shares")  to  new
institutional  and other investors (the "Placing").  Of the funds  raised,  Paul
Bassi  has invested £3 million, Marcus Daly has invested £250,000 and John  Jack
has invested £75,000.

Additionally,  Paul Bassi and Marcus Daly, who were appointed to  the  Board  in
July  2006,  have  been appointed Chief Executive and Finance  Director  of  REI
respectively, effective 1 January 2007.

Commenting  on  the  placing, Peter Lewin, Chairman  of  REI,  stated,  "We  are
extremely  pleased by the level of support that we have received  from  our  new
investors.   REI is now in a position to capitalise on what we believe  are  the
considerable  opportunities  that exist to grow the business  significantly  and
deliver strong returns for all our shareholders. "

Paul  Bassi, Chief Executive designate, commented, "REI has grown steadily since
its inception and we believe we are now well placed to drive that growth through
the  creation  of  value-enhancing investments.  We already have  access  to  an
extensive  network  of  deal opportunities and, using  the  Company's  increased
funds,  we  aim  to build a prudently geared property portfolio of approximately
£150 million within the next 18 months."

Background to and reasons for the Placing

REI  was  admitted to trading on AIM in June 2004 under the direction  of  Peter
Lewin  and has steadily built a property portfolio of commercial property assets
with an estimated value of approximately £28 million.

The  purpose  of  the  fundraising  is  to  drive  a  new  investment  strategy,
implemented  by  an  experienced management team led by Paul Bassi,  which  will
focus  on  central  England and Midlands property and which  will  be  aimed  at
providing  high  yield and strong capital enhancement. The  Company  intends  to
create investment properties out of vacant or part-vacant, short leased, single,
multi-let  and  distressed assets.  The Company's niche areas of  activity  will
include  non  criteria  "orphan" disposals by institutions;  assets  not  easily
acquired  by  private  and/ or smaller investors; and  distressed  and  deadline
purchases.

The additional funds raised pursuant to the Placing give the Company the ability
to  make cash acquisitions, thereby facilitating quick execution and competitive
terms.   Property is sourced through the Board's established network  of  agents
and  its  market reputation and profile.  The business will be further supported
by  Bond  Wolfe Auctioneers, of which Paul Bassi remains chairman,  and  Bigwood
Chartered  Surveyors.  The  directors aim to build a prudently  geared  property
portfolio  of approximately £150 million within the next 18 months. The  Company
has a number of projects in progress which the Board looks forward to announcing
in due course.

Board changes

The  Company  also announces the appointment of Paul Bassi and  Marcus  Daly  as
Chief  Executive and Finance Director of the Company, respectively, effective  1
January  2007.  Paul Bassi and Marcus Daly were appointed to the Board  in  July
2006. Peter Lewin will remain as Chairman of the Company with John Jack as  non-
executive  Deputy Chairman. The Company intends to appoint a further independent
non-executive director in due course.

Mr  Bassi  is chairman of Bond Wolfe plc, one of the largest auction  houses  in
central  England,  and is a significant West Midlands property  owner.   Amongst
other  achievements,  he was appointed UK strategy advisor  to  Coutts  Bank  in
January 2006, having been the Regional Chairman for the Midlands since 2001, and
will be High Sheriff of West Midlands for 2009.  He has won a number of business
awards, including the 2003 PricewaterhouseCoopers Asian Entrepreneur of the year
(central UK).

The Placing

The  Placing Shares will be issued as fully paid and will upon issue  rank  pari
passu  in  all  respects with the existing ordinary shares of REI including  the
right  to receive all dividends and other distributions declared, made  or  paid
after the date of issue.

Application will be made for the admission of the Placing Shares to  trading  on
AIM,  a  market of London Stock Exchange plc.  It is expected that  the  Placing
Shares will be admitted to trading on AIM at 8.00am on 28 December 2006.

Prior  to  admission of the Placing Shares to trading on AIM, the completion  of
the  Placing will be subject to certain customary conditions being satisfied  or
waived and certain customary termination rights not being exercised.

Following  admission of the Placing Shares, the directors of  the  Company  will
hold the following interests in REI shares:

Name       Existing       New      Total     Percentage     Total   Percentage of
           Ordinary  Ordinary   Ordinary       Enlarged  Warrants           Fully
             Shares    Shares   Shares(3)        Issued    Issued         Diluted
                                                  Share                  Enlarged
                                                Capital                    Issued
                                                                          Share(4)
                                                                          Capital

Peter    10,250,000         0  10,250,000         3.01%  5,125,000           4.35%
Lewin
Paul     12,875,000 30,000,000 42,875,000        12.58%  6,212,500          13.88%
Bassi (1)
Marcus    1,350,000  2,500,000  3,850,000         1.13%    675,000           1.28%
Daly (2)
John Jack 1,250,000    750,000  2,000,000         0.59%    625,000           0.74%


Notes:

(1)  Paul  Bassi's  investments are held through Bond Wolfe Assets  Limited,  of
     which he is executive chairman and sole shareholder

(2)  Marcus Daly's investment is held through Datalore Limited

(3)  The warrants over REI shares are exercisable at 12 pence per share  over  a
     period of seven years from the date of grant

(4) Total warrants over 13,012,500 REI shares



Contacts:
Real Estate Investors PLC                 [phone]
Peter Lewin - Chairman
Paul Bassi - Chief Executive
designate

Kaupthing Singer &                       [phone]
Friedlander Capital Markets Limited - Corporate broker to REI
Nicholas How

Smith & Williamson Corporate            +44  (0)20 7131 4000
Finance Limited - Nominated adviser to REI
Azhic Basirov

Powerscourt                              [phone]
Victoria Brough



The  contents  of  this  announcement, for  which  REI  and  its  directors  are
responsible, have been approved by Smith & Williamson Corporate Finance  Limited
("S&W")  solely  for  the purposes of section 21 of the Financial  Services  and
Markets Act 2000.

S&W,  which  is authorised and regulated in the United Kingdom by the  Financial
Services  Authority, is acting exclusively for the Company and no  one  else  in
connection  with  the Placing.  S&W will not be responsible to anyone  else  for
providing  the protections afforded to its clients nor for providing  advice  in
relation to the Placing or any other matter referred to in this announcement.

This  announcement  does  not constitute, or form part  of,  an  offer,  or  any
solicitation  of  any  offer  to purchase or subscribe  for  securities  in  the
Company.

The  price  and  value  of  securities may go up as  well  as  down.   Potential
investors  should  contac a professional adviser as to  he  suitability  of  any
offering for the individual concerned.

This announcement contains forward-looking statements with respect to certain of
the  plans  and current goals and expectations relating to the future  financial
condition,  the business performance and the results of REI.  By  their  nature,
all  forward-looking statements involve risk and uncertainty because they relate
to  future  events and circumstances that are beyond the control of REI.   As  a
result,  REI's  actual  future  financial condition,  business  performance  and
results may differ materially from the plans, goals and expectations express  or
implied  in  these forward-looking statements.  REI undertakes no obligation  to
publicly  update or revise forward-looking statements, except as may be required
by applicable law and regulation.  No statement in this announcement is intended
to be a profit forecast or to be relied upon as a guide to future performance.