REG - Grit Real Estate Inc - Update on proposed acquisition of majority stakes

Grit Real Estate IncomeAnnouncement

31/03/2022 13:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220331:nRSe7883Ga&default-theme=true

RNS Number : 7883G  Grit Real Estate Income Group  31 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" or the "Group")

 

EXTENSION OF LONG STOP DATE AND UPDATE ON THE PROPOSED ACQUISITION OF

MAJORITY CONTROLLING INTERESTS IN

GATEWAY REAL ESTATE AFRICA LIMITED AND

AFRICA PROPERTY DEVELOPMENT MANAGERS LIMITED

 

 

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 Dollar and
Euro denominated long-term leases with high quality multi-national tenants,
today provides an update on the proposed acquisition of majority controlling
interests in Gateway Real Estate Africa Limited ("GREA") and Africa Property
Development Managers Limited ("APDM") (the "Proposed Acquisition"), that was
announced by the Company on 22 November 2021 and in the combined prospectus
and circular published on the same date .

 

The Proposed Acquisition was being pursued in conjunction with a proposed open
offer and placing of new ordinary shares of nil par value ("Ordinary Shares")
at an issue price of US$0.52 per new Ordinary Share (the "Issue Price") to
reduce Grit's overall indebtedness and to provide future capital for the
further expansion of Grit's core and expanded business.

 

On 20 December 2021, the Company issued 146,342,312 new Ordinary Shares at the
Issue Price, raising gross proceeds of US$76.1 million. The completion of the
acquisition of majority controlling interests in GREA and APDM was subject to
the fulfilment or waiver (as applicable) of certain conditions precedent which
were subject to a long stop date of 31 March 2022.

 

Grit has today set out with the vendors of GREA and APDM certain amendments to
the existing sale and purchase agreements in relation to the Proposed
Acquisition (the "SPAs"), including an agreed extension of the long stop date
to 8 April 2022, a timeframe required to execute the various SPA addendums. A
further announcement, including the details of the transaction amendments and
other salient information, will be announced by the Company upon the final
execution of the SPA addendums, being no later than 8 April 2022.

 

Grit remains confident of delivering superior total returns in the medium to
longer term and is well positioned to capitalise on the significant recovery
potential across its unique high-quality property portfolio. The Grit Board
expects significant further potential value to be created through increasing
its capital allocation to limited, risk mitigated development returns through
servicing existing and target tenants and expects the acquisition of stakes in
APDM and GREA to meaningfully contribute to this.

 

By order of the Board

 

31 March 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 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 office 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

SEM authorised representative and sponsor: Perigeum Capital Ltd

UK Transfer secretary: Link Assets Services Limited

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAFDFDEKAEFA