REG-Grit Real Estate Income Group Capital Markets Day and Transactions update

Grit Real Estate IncomeAnnouncement

10/05/2023 08:00

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Grit Real Estate Income Group (GR1T)
Capital Markets Day and Transactions update

10-May-2023 / 08:00 GMT/BST

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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")

 

 

                         GRIT CAPITAL MARKETS DAY AND TRANSACTION UPDATES

                                                 

 

The board of Directors (the “Board”)  of Grit Real Estate Income  Group Limited will today host  a
Capital Markets Day for investors and key stakeholders, both physically in Mauritius and available
for virtual attendance via livestream. The inaugural  Capital Markets and Investor day will  delve
deeper into “Grit 2.0”, the Group’s growth strategy post the acquisition of controlling  interests
in Gateway Real Estate Africa (“GREA”) and African Property Development Managers (“APDM”).

 

The livestream will  commence at 12:30pm  Mauritius / 09:30am  UK / 10:30am  South Africa via  the
Investor Meet Company  platform, with  the livestream  being open  to all  existing and  potential
shareholders and other interested parties at the following link:

 

 1 https://www.investormeetcompany.com/grit-real-estate-income-group-limited/register-investor    

 

A playback will be accessible on-demand via the Company website after the event. 

 

No new material or price sensitive information will be discussed and all information is  contained
in the presentation which will be made available on the Company’s website on 10 May 2023. Ahead of
the presentations the Board is  however pleased to provide  the following updates on  transactions
currently underway:

 

Acquisition of controlling interests in GREA and APDM:

 

Phase 3 of the acquisition of GREA and APDM  is scheduled to complete on 15 May 2023. However,  as
the Mauritius Prime  Minister’s Office (“PMO”)  consent remains outstanding,  parties have  agreed
that Grit will  transfer the remainder  of the  transaction cash consideration,  and Gateway  will
pledge the GREA and APDM shares it is selling,  to an escrow agent pending the receipt of the  PMO
approval which is expected shortly. 

 

In addition, Grit has offered to acquire the 2.85% of GREA owned by Prudential Impact  Investments
Private Equity LLC on broadly similar terms, with completion also scheduled to occur on receipt of
the PMO consent. 

 

A further announcement will be made when these consents are received and legal completion  occurs,
although practical completion remains May 15. 

 

Following legal completion,  Grit will own  51.4% of GREA  directly and a  78.95% shareholding  in
APDM, with  the respective  remaining balances  being held  by the  Public Investment  Corporation
(PIC).

 

Update on disposal of interests in Beachcomber Hospitality Investments (“BHI”)

 

Following todays announcement  by BHI  of  the fully  subscribed  preference share  issuance,  all
conditions attached to the disposal of Grit’s remaining  interests in BHI have now been met.  This
follows a recent  Supreme Court of  Mauritius approval of  the scheme of  arrangement that  merges
Grit’s wholly owned  subsidiary Leisure  Property Northern (Mauritius)  Limited (“LPNL”)  with and
into BHI.

 

As contained in the Company’s announcement on 24 February 2023, Grit’s exit of its interest in BHI
was conditional on BHI raising at least EUR 25.8 million  by way of a public offer and listing  of
new BHI preference shares. These alloted funds will now  be disbursed on or about 12 May 2023,  at
which point Grit’s disposal of its remaining BHI interest and transfer of LPNL debt will have been
concluded.

Potential IFC investment

 

The International Finance Corporation, a division of  the World Bank, recently disclosed on  their
website a factual summary of a potential investment  in Bora Africa, a wholly owned subsidiary  of
Grit Real  Estate Income  Group Limited  focused in  the industrial  real estate  sub-sector.  The
proposed investment is a US$30 million subscription  in subordinated notes issued by Bora  Africa.
While no contractual or  final investment decisions  have yet been  reached, the IFC  transparency
directives required disclosure of the salient details attached to the proposed investment. Further
detail can be found on their website at:

 2 https://disclosures.ifc.org/project-detail/SII/47366/grit-reig-aii

 

Proposed acquisition of a controlling interest in Buffalo Mall, Kenya

 

Grit intends acquiring, subject to necessary approvals being obtained, an additional 50%  interest
in Buffalo Mall Naivasha Limited  (“BMNL”), a company owning the  Buffalo Mall in Naivasha,  Kenya
that will result in Grit’s interest in BMNL increasing to 100% for a value of USD 2,244,222.  This
represents a c.15% discount to the latest independent appraised value of the mall.

 

Once Grit takes full control and  ownership of the retail complex, it  will be free to deploy  the
full extent of its asset management and leasing capabilities with a view to repositioning the mall
and the  adjacent  owned  37,280m2  vacant  land that  has  been  earmarked  for  value  enhancing
initiatives. The asset is expected to move from being accounted for as associate to a wholly owned
and consolidated subsidiary in the 30 June 2023 financial statements.

 

By Order of the Board

 

10 May 2023

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

Grit Real Estate Income Group Limited                             
Bronwyn Knight, Chief Executive Officer                          +230 269 7090
Darren Veenhuis, Investor Relations                              +44 779 512 3402
                                                                  
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  impact 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+, Catherine McIlraith+,  Jonathan
Crichton+, Cross Kgosidiile and Lynette Finlay+.

(* 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, 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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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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   ISIN:          GG00BMDHST63
   Category Code: UPD
   TIDM:          GR1T
   LEI Code:      21380084LCGHJRS8CN05
   Sequence No.:  242498
   EQS News ID:   1628657


    
   End of Announcement EQS News Service

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