REG - Grit Real Estate Inc - DISPOSAL OF ABSA HOUSE IN EBENE, MAURITIUS

Grit Real Estate IncomeAnnouncement

26/01/2022 07:05

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RNS Number : 6125Z  Grit Real Estate Income Group  26 January 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")

 

 

DISPOSAL OF ABSA HOUSE IN EBENE, MAURITIUS

CAUTIONARY ANNOUNCEMENT IN RELATION TO ITS SALE

 

 

Shareholders are advised that the Company, through its wholly-owned subsidiary
Grit Services Limited ("GSL"), has signed a Share Sale and Purchase Agreement
("SPA") with Lavastone Ltd ("Lavastone") for the sale of BH Property
Investments Ltd ("BH Property"), the holding company of Absa House office
building in Ebene, Mauritius.

 

The transaction comprises the sale of 100% of GSL's interests in BH Property
and the underlying asset; two plots of leasehold land totaling 8,099 sqm and a
gross lettable area of 8,669 sqm (the "Property"), at a disposal value of
MUR533 million (US Dollar 12.2 million at current MUR-US Dollar exchange rate
of 43.78) for the Property, which equates to a 7.75% yield. The anchor tenant
is Absa Bank (Mauritius) Ltd, occupying 86% of the lettable space, while the
book value of the Property at 31 December 2021 is MUR 541.2 million (US Dollar
12.4 million). Inclusive of transaction costs, the net sale proceeds to Grit
are expected to be approximately MUR 180 million, or US Dollar 4.1 million,
which will be applied towards the Company's revolving credit facilities and
further debt reduction.

 

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

"In line with the Company's asset recycling strategy, Grit expects to
initially apply the net proceeds of the transaction to reducing its debt
levels ahead of recycling proceeds, over the medium term, into its
higher-yielding secured strategic pipeline that is expected to further enhance
the resilience of the Group's portfolio and result in increased distributable
income and enhanced capital value to Grit's shareholders."

 

The transaction remains subject to conditions precedent in favour of both
parties, which are expected to be cleared, and with the transaction reaching
final closing during the first quarter of 2022.  A further announcement will
be released to the market once all the conditions precedent relating to this
transaction are cleared.

 

By Order of the Board

 

26 January 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
                                                                               Grit-maitland@maitland.co.uk (mailto: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 - Transaction Advisor and SEM Authorised Representative
 & Sponsor
 Shamin A. Sookia                                                              +230 402 0894
 Kesaven Moothoosamy                                                           +230 402 0898

 Capital Markets Brokers Ltd - Mauritian Sponsoring Broker
 Neetusha Aubeeluck                                                            +230 402 0285

NOTES:

Grit Real Estate Income Group Limited is the leading pan-African real estate
company focused on investing in 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 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 http://grit.group/
(http://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

Mauritian sponsoring broker: Capital Markets Brokers Ltd

 

This notice is issued pursuant to the FCA Listing Rules and 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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