REG-Grit Real Estate Income Group VOLUNTARY UPDATE: DISPOSAL OF VDE HOUSING ESTATE AND ACQUISITION OF REMAINING INTEREST IN ORBIT AFRICA LOGISTICS FOR A NOMINAL CONSIDERATION

Grit Real Estate IncomeAnnouncement

23/12/2025 12:30

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   Grit Real Estate Income Group (GR1T)
   VOLUNTARY UPDATE: DISPOSAL OF VDE HOUSING ESTATE AND ACQUISITION OF
   REMAINING INTEREST IN ORBIT AFRICA LOGISTICS FOR A NOMINAL CONSIDERATION

   23-Dec-2025 / 12:30 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")

    

   VOLUNTARY UPDATE:  DISPOSAL  OF  VDE HOUSING  ESTATE  AND  ACQUISITION  OF
   REMAINING INTEREST IN ORBIT AFRICA LOGISTICS FOR A NOMINAL CONSIDERATION

   The Board of  Directors (the  “Board”) of  Grit Real  Estate Income  Group
   Limited provides an update on the execution of transactions being advanced
   as part of the Group’s non-core asset disposal and portfolio  optimisation
   strategy, including the disposal of  the VDE Housing Estate in  Mozambique
   and the  acquisition of  the  remaining equity  interest in  Orbit  Africa
   Logistics (“OAL”) in Nairobi, Kenya.

   Grit is a pan-African income real estate company focused on investing  in,
   developing and actively managing a diversified portfolio of impact  assets
   underpinned by  predominantly US  dollar  and Euro  denominated  long-term
   leases to high-quality multinational tenants.

    

   ACQUISITION OF REMAINING 30% EQUITY STAKE IN ORBIT AFRICA LOGISTICS

   Introduction

   Grit, through its subsidiary, Bora Africa (“Bora Africa”), has resolved to
   acquire the remaining
   30 percent equity interest in OAL for a nominal consideration of US$2.00.

    

   OAL is a Mauritian industrial real estate platform which indirectly owns a
   strategically located warehousing  and manufacturing  facility on  Mombasa
   Road in Nairobi, Kenya (“Orbit”)  one of the country’s primary  industrial
   and logistics corridors, serving the port of Mombasa, the Inland Container
   Depot, and the broader East African region.

    

   The Orbit facility was originally acquired by Grit in 2021 as a 25-year US
   dollar denominated  sale and  leaseback  transaction with  Orbit  Products
   Africa Limited (“OPAL”).

    

   Letlole la Rona Limited (“LLR”) a property company listed on the  Botswana
   Stock Exchange invested into Orbit in July 2022 through the acquisition of
   30 percent in OAL.

    

   Grit, through Bora Africa, has at all times acted as the asset manager  of
   OAL and the underlying  logistics asset. LLR  participated as a  financial
   co-investor but did not undertake asset management responsibilities.

    

   OPAL, along with many manufacturing  businesses in Kenya, is  experiencing
   challenging operating conditions, which have impacted its ability to  meet
   rental obligations and  have contributed  to the  underperformance of  the
   underlying real estate asset.

    

   Following a review of the investment in light of this performance, LLR has
   elected  to   exit  its   interest,   with  negotiations   regarding   its
   disinvestment currently at an advanced stage.

    

   The acquisition will result in  Grit securing full economic ownership  and
   control of the  Orbit platform, consolidating  asset management  oversight
   and enabling a coordinated approach to operational stabilisation,  capital
   structure management, and value recovery.

    

   Rationale for acquisition

   The  acquisition   is   underpinned  by   several   value-protective   and
   value-accretive considerations.

    

   Grit already controls the asset management function and has implemented  a
   range of  operational  initiatives, including  restructuring  the  tenancy
   profile, reducing  reliance  on  a  single  occupier,  and  onboarding  an
   additional  third-party  tenant.  These   actions  have  improved   income
   resilience and reduced concentration risk.

    

   While  OPAL  is  facing  operational  and  cash  flow  constraints,  these
   challenges  are  actively  managed  through  lease  restructuring,   space
   rationalisation, and tenant diversification, and the business continues to
   operate and generate income.

    

   By securing 100 percent ownership and control of the asset, Grit is better
   positioned to complete the operational turnaround, stabilise  performance,
   and, where appropriate, position the asset  for a future sale on  improved
   terms.

    

   The nominal  consideration reflects  the value  of the  investment  having
   accounted for the negative economic impact on the manufacturing sector and
   consequently on OAL.

    

   Impact of acquisition

   The acquisition is immediately accretive to Grit’s net asset value, adding
   approximately 2 cents per share  on consolidation, (before adjustments  to
   non-controlling interest).

   Full ownership  enhances Grit’s  ability to  optimise capital  allocation,
   manage refinancing discussions holistically,  and pursue rental  insurance
   recoveries without structural friction. Over the medium term, this creates
   a clearer pathway  to stabilising income,  improving asset valuation,  and
   unlocking recovery value for shareholders.

   The transaction  does not  introduce new  liabilities at  Group level  and
   strengthens governance, control, and accountability over the asset.

    

   By Order of the Board

   23 December 2025

    

   FOR FURTHER INFORMATION, PLEASE CONTACT:

   Grit Real Estate Income Group Limited                      
   Bronwyn Knight, Chief Executive Officer                   +230 269 7090
   Morne Reinders, Investor Relations                        +27 82 480 4541
                                                              
   Cavendish Capital Markets Limited - UK Financial Adviser   
   Tunga Chigovanyika/ Edward Whiley (Corporate Finance)     +44 20 7220 5000
   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
   Rukhsaar Lallmahomed
                                                             +230 402 0893
    
                                                              
                                                              
   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

   Corporate service provider: Mourant Governance Services (Guernsey) Limited

   Registered office address: PO Box 186, Royal Chambers, St Julian's Avenue,
   St Peter Port, Guernsey GY1 4HP

   Registrar and transfer agent (Mauritius): Onelink Ltd

   SEM authorised representative and sponsor: Perigeum Capital Ltd

   UK Transfer secretary: MUFG Corporate Markets

   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  1 EQS Group.
   The issuer is solely responsible for the content of this announcement.

   View original content:  2 EQS News

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   ISIN:          GG00BMDHST63
   Category Code: MSCL
   TIDM:          GR1T
   LEI Code:      21380084LCGHJRS8CN05
   Sequence No.:  412610
   EQS News ID:   2250920


    
   End of Announcement EQS News Service

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