REG - Grit Real Estate Inc - LLR completes co-investment in Orbit Africa Asset

Grit Real Estate IncomeAnnouncement

18/07/2022 09:30

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RNS Number : 7896S  Grit Real Estate Income Group  18 July 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 CO-INVESTMENT BY LETLOLE LA RONA LIMITED INTO ORBIT AFRICA
WAREHOUSING AND MANUFACTURING FACILITY, NAIROBI, KENYA

 

 

Further to the announcement on 20 May 2022 (link here
(https://polaris.brighterir.com/public/grit/news/rns/story/x8k0kpx) ), the
board of Directors (the "Board") of Grit Real Estate Income Group Limited
today confirms the completion of a 30% co-investment by Letlole La Rona
Limited ("LLR") into Grit's industrial facility in Nairobi, Kenya (the
"Asset"), currently tenanted to Orbit Products Africa Ltd.

 

Conditions precedent have now been met, including LLR obtaining all necessary
approvals, for the acquisition of a 30% shareholding in the Mauritian holding
entity of the Asset. The total acquisition value is US$7.23 million, which is
being made through a combination of equity subscription and Grit shareholder
loan repayments.

 

An additional acquisition fee of US$600,000 is being earned by Grit from LLR
following the completion of the Asset transaction. Grit will also earn an
annual asset management fee of 0.5% of the value of the Asset by virtue of the
asset management agreement between Grit and the Asset's Mauritius holding
entity.

 

Grit expects to utilise the cash proceeds to further increase the Company's
interest in Gateway Real Estate Africa ("GREA") to 35.01% by 31 July 2022.
This is the penultimate step towards Grit acquiring a controlling interest in
GREA by 31 December 2022 as previously announced by Grit (link to detailed
announcement here
(https://polaris.brighterir.com/public/grit/news/rns/story/w6d0qgx) ).

 

Bronwyn Knight, CEO of Grit commented:

 

"This is a ground-breaking transaction for Grit that monetises our know-how
and underpins our asset management objectives.

 

Moreover, it cements an authentic partnership, as Grit will use our capital
market experience to play an integral role in LLR's risk-mitigated
'Go-to-Africa' strategy, providing otherwise inaccessible, value-accretive
co-investment opportunities across the continent.

 

"I am proud of the fact that LLR is woman-led. The development of individuals,
companies, and the markets in which we operate has always been part of our
business fabric. This pioneering transaction unlocks value for both Grit and
LLR investors, and importantly, the Botswanan communities we serve."

 

 

By Order of the Board

 

18 July 2022

 

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 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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