REG - Grit Real Estate Inc - Completion of acquisition of Orbit Africa facility

Grit Real Estate IncomeAnnouncement

09/03/2022 07:00

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RNS Number : 1097E  Grit Real Estate Income Group  09 March 2022

 GRIT REAL ESTATE INCOME GROUP LIMITED

 (Registered in Guernsey)

 (Registration number: 68739)

 LSE share code: GR1T

 SEM share code: DEL.N0000

 ISIN: GG00BMDHST63

 LEI: 21380084LCGHJRS8CN05

 ("Grit" or the "Company" and, together with its subsidiaries, the "Group")

 

 

COMPLETION OF THE ACQUISITION OF THE ORBIT AFRICA WAREHOUSING AND
MANUFACTURING FACILITY, NAIROBI, KENYA

 

 

The board of Directors (the "Board") of Grit Real Estate Income Group Limited,
a leading pan-African real estate company focused on investing in, developing
and actively managing a diversified portfolio of assets underpinned by
predominantly US$ and Euro denominated long-term leases with high quality
multi-national tenants, announces that all the conditions precedent related to
the Share Purchase Agreement governing the Orbit Africa sale-and-leaseback
transaction in Nairobi, Kenya, have been fulfilled and that such acquisition
has now been completed by the Company.

 

The acquisition follows previous announcements by the Company on 2 July 2021
related to its raising of a US$ 25 million debt facility from the
International Finance Corporation ("IFC"), the investment arm of the World
Bank, and on 13 October 2021 related to the US$ 31.5 million perpetual note to
Ethos Mezzanine Partners GP Proprietary Limited and BluePeak Private Capital
GP.

 

The Board looks forward to the successful completion of the redevelopment and
expansion of the Orbit Africa warehousing and manufacturing facility, which is
expected to be completed in the fourth quarter of 2023 when it will be let on
a new 20-year triple net lease to Orbit Products Africa Limited.

 

The total investment in the property is expected to be US$53.6 million (incl.
VAT), comprising of the initial sale and leaseback on a new 25-year US dollar
denominated triple net lease to Orbit Products Africa Limited at a net
acquisition yield of 9.60%, alongside the redevelopment and expansion of the
facility at an attractive contractual development yield of 16.0%. The Company
expects the transaction to be accretive to the Company's NAV and earnings from
inception and to realise attractive sustainable capital value enhancement and
rental income growth.

 

The Orbit Africa Facility upgrades are expected to create long lasting
positive social, economic and environmental benefits for local communities and
help to further strengthen the broader precinct as a prime logistics and
supply chain hub, whilst the property will additionally benefit from being
significantly improved to today's modern FMCG industry standards and achieving
an IFC EDGE green building certification.

 

Bronwyn Knight, CEO of Grit Real Estate Income Group Limited, commented:

"We are pleased to complete this transaction, which will further increase
Grit's exposure to Kenya and the broader light industrial sector, which is
expected to be accretive from inception to both Grit's NAV and earnings,
delivering enhanced sustainable value to our shareholders whilst creating long
lasting positive social, economic and environmental benefits for local
communities."

 

By Order of the Board

 

9 March 2022

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU no.
596/2014) (as amended) as it forms part of UK domestic law by virtue of the
European union (withdrawal) act 2018 and other implementing measures. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Grit Real Estate Income Group Limited
 Bronwyn Knight, Chief Executive Officer                           +230 269 7090
 Darren Veenhuis, Chief Strategy Officer and Investor Relations    +44 779 512 3402

 Maitland/AMO - Communications Adviser
 James Benjamin                                                    +44 7747 113 930 / +44 20 7379 5151
 Alistair de Kare-silver                                           Grit-maitland@maitland.co.uk

 finnCap Ltd - UK Financial Adviser
 William Marle/Teddy Whiley (Corporate Finance)                    +44 20 7220 5000
 Mark Whitfeld/Pauline Tribe (Sales)                               +44 20 3772 4697
 Monica Tepes (Research)                                           +44 20 3772 4698

 Perigeum Capital Ltd - SEM Authorised Representative and Sponsor
 Shamin A. Sookia                                                  +230 402 0894
 Kesaven Moothoosamy                                               +230 402 0898

 Capital Markets Brokers Ltd - Mauritian Sponsoring Broker
 Elodie Lan Hun Kuen                                               +230 402 0280

 

NOTES:

Grit Real Estate Income Group Limited is the leading pan-African real estate
company focused on investing in, developing and actively managing a
diversified portfolio of assets in carefully selected African countries
(excluding South Africa). These high-quality assets are underpinned by
predominantly US$ and Euro denominated long-term leases with a wide range of
blue-chip multi-national tenant covenants across a diverse range of robust
property sectors.

The Company is committed to delivering strong and sustainable income for
shareholders, with the potential for income and capital growth.

The Company holds its primary listing on the Main Market of the London Stock
Exchange (LSE: GR1T and a secondary listing on the Stock Exchange of Mauritius
(SEM: DEL.N0000).

Further information on the Company is available at www.grit.group
(http://www.grit.group)

Directors: Peter Todd+ (Chairman), Bronwyn Knight (Chief Executive Officer)*,
Leon van de Moortele (Chief Financial Officer)*, David Love+, Sir Samuel Esson
Jonah+, Nomzamo Radebe, Catherine McIlraith+, Jonathan Crichton+, Cross
Kgosidiile(+) and Bright Laaka(+) (Permanent Alternate Director to Nomzamo
Radebe).

(* Executive Director) (+ independent Non-Executive Director)

 

Company secretary: Intercontinental Fund Services Limited

Registered address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter
Port, Guernsey GY1 4HP

Registrar and transfer agent (Mauritius): Intercontinental Secretarial
Services Limited

UK Transfer secretary: Link Asset Services Limited

SEM authorised representative and sponsor: Perigeum Capital Ltd

 

This notice is issued pursuant to the FCA Listing Rules, SEM Listing Rule
15.24 and the Mauritian Securities Act 2005. The Board of the Company accepts
full responsibility for the accuracy of the information contained in this
communiqué.

 

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