REG-Grit Real Estate Income Group CONCLUSION OF LANDMARK STRATEGIC PARTNERSHIP WITH BROLL PROPERTY GROUP

Grit Real Estate IncomeAnnouncement

05/12/2024 08:00

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   Grit Real Estate Income Group (GR1T)
   CONCLUSION OF LANDMARK STRATEGIC PARTNERSHIP WITH BROLL PROPERTY GROUP

   05-Dec-2024 / 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 codes (dual currency trading): DEL.N0000 (USD) / DEL.C0000      
   (MUR)

   ISIN: GG00BMDHST63

   LEI: 21380084LCGHJRS8CN05

    

   ("Grit" or the "Company" or the "Group")

    

    

     CONCLUSION OF LANDMARK STRATEGIC PARTNERSHIP WITH BROLL PROPERTY GROUP

    

   The Board of  Directors (the  "Board") of  Grit Real  Estate Income  Group
   Limited today announces  the conclusion  of a  strategic partnership  with
   Broll Property  Group  (“Broll”)  as  part  of  Grit’s  ongoing  focus  on
   operational  optimisation,  leveraging   economies  of   scale  and   cost
   reduction.

    

   In terms  of the  partnership, Broll  will assume  responsibility for  the
   property and  facilities management  of all  of Grit’s  assets, valued  at
   c.US$812 million,  excluding  the Group’s  retail  assets in  Zambia,  and
   Morocco, where Heriot Properties, and CBRE will continue as the respective
   property managers.

    

   The partnership will  result in  a targeted cost  saving of  approximately
   US$1 million per  annum, in line  with Grit’s stated  objective to  reduce
   ongoing administrative  costs as  a percentage  of total  income-producing
   assets to a ratio of 1.0% in the medium term.

    

   The Board anticipates that a simpler  structure will enable Grit to  focus
   on its  core expertise  in impact  real estate  development and  strategic
   asset management initiatives.

    

   In addition,  the  Group  expects  the  partnership  to  leverage  Broll’s
   extensive  database,  footprint,  systems,  and  proficiency  to  expedite
   filling vacancies,  and support  efficient rental  collections across  the
   portfolio.

    

   Bronwyn Knight, CEO and co-founder of Grit commented:

    

   “This partnership unlocks meaningful economies of scale, and  importantly,
   finds a way for Grit to fully focus on impact real estate development  and
   asset management as part of its Grit 2.0 strategy.

    

   “After an extensive analysis, the Board concluded that a simpler structure
   would support the  successful development of  our significant pipeline  of
   assets under the guidance of our predominantly women development team,  as
   well as the efficient asset management of the portfolio.”

    

   Malcolm Horne, Group CEO of Broll commented:

    

   “We are  excited  to  embark  on this  strategic  partnership  with  Grit,
   combining our expertise in property  and facilities management with  their
   focus on impact real estate.

    

   “This collaboration not only strengthens  our presence across Africa,  but
   also reinforces our  commitment to delivering  operational excellence  and
   cost efficiency, ultimately driving value for Grit and its stakeholders.”

    

   The effective date  of the strategic  partnership is 1  February 2025  and
   will be preceded by a handover  phase and a comprehensive tenant  outreach
   program, to ensure a seamless transition and no business disruption.

    

   By Order of the Board

    

   05 December 2024

   FOR FURTHER INFORMATION, PLEASE CONTACT:

   Grit Real Estate Income Group Limited                      
   Bronwyn Knight, Chief Executive Officer                   +230 269 7090
   Group Investor Relations                                  ir@grit.group
                                                              
   Cavendish Capital Markets Limited - UK Financial Adviser   
   James King / Tunga Chigovanyika / Teddy Whiley (Corporate +44 20 7220 5000
   Finance)
   Justin Zawoda-Martin / Daniel Balabanoff / Pauline        +44 20 3772 4697
   Tribe (Sales)
                                                              
   Perigeum Capital Ltd - SEM Authorised Representative and   
   Sponsor
   Shamin A. Sookia                                          +230 402 0894

   Darren Chinasamy                                          +230 402 0885
                                                              
                                                              
   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 dual  currency trading secondary listing on  the
   Stock Exchange of Mauritius (SEM: DEL.N0000 (USD) / DEL.C0000 (MUR))

   Further information on the Company is available at www.grit.group

   Directors: Peter Todd (Chairman), Bronwyn Knight (Chief Executive Officer)
   *, Gareth Schnehage (Chief Financial Officer) *, David Love+, Catherine
   McIlraith+, Cross Kgosidiile, Lynette Finlay+ and Nigel Nunoo+.

   (* 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: AGR
   TIDM:          GR1T
   LEI Code:      21380084LCGHJRS8CN05
   Sequence No.:  363186
   EQS News ID:   2044521


    
   End of Announcement EQS News Service

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