Acquisition

Real Estate Investors PLC
22 February 2005



                           REAL ESTATE INVESTORS PLC

              Agreement to purchase commercial property portfolio

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

The properties are located in Wakefield; Devon; Manchester; Portsmouth; and
Newport, South Wales and comprise retail, industrial, office and A3 leisure
investments, all let on institutional leases. The tenants include Whitbread, JJB
Sports, J Coral and Barclays Bank. On completion of outstanding rent reviews,
rental income from the portfolio will be approximately £250,000 per annum.

Peter Lewin, Chief Executive of REI said:

"Quality investments, let to strong tenant covenants, are the backbone of our
business. These five properties meet our strict investment criteria and are an
important addition to our growing portfolio which, on completion of recent
acquisitions, will have a value of approximately £20 million. Despite the
current highly competitive commercial property market, in the UK, we continue to
purchase investments at sensible and realistic prices; the opportunity to issue
new REI shares is particularly welcome and is part of our stated investment
strategy of providing vendors with a continuing interest not only in the
properties being sold, but in the whole REI portfolio."

Further information:

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

Christopher Joll                                                 020 7491 7776
mj2 ltd

22 February 2005




                      This information is provided by RNS
            The company news service from the London Stock Exchange