Property Acquisition

Real Estate Investors PLC
28 October 2004

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

REI completes industrial investment property acquisition in Coventry

Real Estate Investors PLC, the commercial property investment company which
floated on AIM in June 2004, announces that it has today completed the purchase
of a long leasehold industrial investment property on the Alderman Green
Industrial Estate in Coventry for a total consideration of £1,250,000.

The acquisition, REI's third this year, comprises 16,000 sq. ft. of refurbished
modern buildings, let on a new 15 year lease to Personal Hygiene Services
Limited, with a guarantee from PHS Group PLC. The net commencing rental of
£90,600 pa is subject to rent review, at 5 yearly intervals.

The consideration for the acquisition has been financed by a long term, fixed
interest, institutional mortgage, cash from the Company's own resources and the
issue to the vendors of 1,384,615 new 1p REI ordinary shares, at 13p.
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 3 November 2004.

Commenting on the acquisition, Peter Lewin CEO of REI said:

"The deal exemplifies our strategy of acquiring quality investment properties,
let to strong tenant covenants on long leases, where part of the consideration
is satisfied by the issue of new REI shares."

Further information:

Peter Lewin / Malcolm Lewin                                       01923 776633
Real Estate Investors PLC

Christopher Joll / John Evans                                    020 7491 7776
mj2 ltd

28 October 2004



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