REG-Grit Real Estate Income Group Sale of remaining interest in Letlole La Rona Limited

Grit Real Estate IncomeAnnouncement

22/06/2023 07:15

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   Grit Real Estate Income Group (GR1T)
   Sale of remaining interest in Letlole La Rona Limited

   22-Jun-2023 / 07:00 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” and, together with its subsidiaries, the
   "Group")

    

    

        SALE OF REMAINING INTEREST IN LETLOLE LA RONA LIMITED, BOTSWANA

                                        

    

   The board of  Directors (the  “Board”) of  Grit Real  Estate Income  Group
   Limited, announces the disposal of its remaining 6.75% interest in Letlole
   la Rona (“LLR”),  an associate owning  predominantly industrial assets  in
   Botswana.

    

   Grit executed a sale of 18,911,932  shares on the Botswana Stock  Exchange
   at a price of 2.50 Botswanan Pula (“BWP”) per share in cash. Sale proceeds
   amount to BWP  47.3 million (US$  3.6 million). This  tranche concludes  a
   four-part exit from the investment at  a weighted average premium of  1.3%
   to the last published LLR NAV as at 31 December 2022.

    

   Through exiting its full 30% interest in LLR, Grit has raised an aggregate
   cash  amount  of  US$  20.3  million  (which  cost  US$17.6  million  when
   originally purchased  between  2017 and  2019).  Funds received  from  the
   transaction are expected  to be  applied towards Grit  debt reduction  and
   redeployment into acquisitions and future  Group projects over the  medium
   term.

    

   In the 12 months  to 22 June  2023 Grit has, in  aggregate, disposed of  a
   25.1% interest in LLR. The gross property assets subject of the aggregated
   transactions are  US$21.0 million  (being  25.1% of  LLR’s book  value  of
   properties  on  31  December  2022  of  US$  83.5  million).  The   profit
   attributable to the 25.1% interest in  the financial year to 30 June  2022
   was US$ 2.4 million,  which included a fair  value movement on  investment
   property of US$0.5 million in that year.

    

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

   “The disposal by Grit of its final 6.75% interest in Letlole La Rona is in
   line with,  and  materially  contributes  towards,  the  Company's  stated
   strategies of asset  recycling 20%  of the value  of its  portfolio by  31
   December 2023 and the  ongoing reduction in Grit  LTV. Since the  original
   investment in  2019,  and  supported  by Grit’s  direct  real  estate  and
   governance  involvement,  LLR  has  delivered  substantial  value  to  all
   shareholders.

    

   While Grit  remains highly  committed to  investment in  Botswana and  the
   broader region, this recycled capital will now be redeployed in support of
   Grit’s ongoing  transition towards  Africa  impact focussed  assets  under
   Grit2.0, which are expected to deliver near and longer term value creation
   and growth  in net  asset value  and income  for the  benefit of  all  our
   stakeholders, including the people of Africa."

    

   By order of the Board

    

   22 June 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: DIS
   TIDM:          GR1T
   LEI Code:      21380084LCGHJRS8CN05
   Sequence No.:  252554
   EQS News ID:   1662705


    
   End of Announcement EQS News Service

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