TIDMGR1T
RNS Number : 8680R
Grit Real Estate Income Group
05 March 2019
GRIT REAL ESTATE INCOME GROUP LIMITED
(Registered by continuation in the Republic
of Mauritius)
(Registration number: C128881 C1/GBL)
LSE share code: GR1T
SEM share code: DEL.N0000
JSE share code: GTR
ISIN: MU0473N00036
("Grit" or the "Company" or, together with
its subsidiaries, the "Group")
ACQUISITION OF AN ADDITIONAL 25% SHAREHOLDING IN MUKUBA MALL, IN
KITWE, ZAMBIA
The board of directors of Grit Real Estate Income Group Limited
(the "Board"), a leading pan-African real estate company focused on
investing in and actively managing a diversified portfolio of
assets underpinned by predominantly US$ and Euro denominated
long-term leases with high quality multi-national tenants, is
pleased to announce that the Group, through its wholly owned
subsidiary Zambian Property Holdings ("ZPH"), has entered into a
subscription of shares agreement (the "Agreement") with Paxton
Investments Limited ("Paxton"), whereby ZPH will acquire 8,191,050
new shares in Paxton for total consideration of US$8,191,050 (the
"Transaction").
Following completion of the Transaction, ZPH will own
approximately 99.9 per cent. of the issued share capital of Paxton,
which in turn owns a 25 per cent. interest in Mukuba Mall Limited
("MML"), the underlying 100 per cent. holding entity of Mukuba Mall
in Kitwe, Zambia. Following completion of the Transaction, Grit's
total interest in MML will be 75 per cent. (currently 50 per
cent.).
Bronwyn Corbett, Chief Executive Officer of Grit Real Estate
Income Group Limited, commented:
"This acquisition of a further 25 per cent. shareholding in
Mukuba Mall allows the Company to expand its total exposure to 75
per cent. in this well performing, fully let, dominant retail
offering that is well positioned in Kitwe and is expected to
deliver further value to shareholders through NAV and distribution
accretion.
Since the Company acquired its initial 50 per cent. shareholding
in Mukuba Mall in 2015, we have seen positive valuation uplift,
rental growth and low vacancy. We are confident that Mukuba Mall
remains extremely well placed to continue its growth trajectory
despite wider retail industry challenges. This transaction further
strengthens the Company's exposure to convenience retail, which has
proven to be the most resistant subsector in retail."
The Property
Mukuba Mall is a retail property located in Kitwe, Zambia, the
country's second largest city in terms of both the size of the
population and by land and one of the most developed commercial and
industrial areas in the country. The Mall is well situated in the
Copperbelt and is not only the dominant retail offering in Kitwe
but also attracts customers from the nearby Democratic Republic of
the Congo ("DRC") border.
Property name and address: Mukuba Mall, corner of Freedom Way and
Chiwala Avenue
Geographic location: Kitwe, Zambia
---------------------------------------
Sector: Retail
---------------------------------------
Gross lettable area (m(2) ): 28,236
---------------------------------------
Weighted average gross rental/m(2) US$16.93
/pm:
---------------------------------------
Weighted average annual lease
escalation: 3.8%
---------------------------------------
Vacancy rate by gross lettable
area (m(2) ): 0%
---------------------------------------
Acquisition Yield: 8.20%
---------------------------------------
December 2018 Valuation Cap Rate: 7.75%
---------------------------------------
Warranties
The seller has provided the Company with warranties and
indemnities standard for a transaction of this nature.
Effective Date
The Transaction is subject to the fulfilment of various
conditions precedent, including satisfactory due diligence and
approval by the relevant competition authority.
Categorisation
The Transaction is uncategorised in terms of the SEM Listing
Rules, the JSE Listings Requirements and the LSE Listing Rules.
Information contained in this announcement has been voluntarily
disclosed by Grit.
The Transaction constitutes an undertaking in the ordinary
course of business of Grit.
By Order of the Board
5 March 2019
FOR FURTHER INFORMATION, PLEASE CONTACT:
Grit Real Estate Income Group Limited
Bronwyn Corbett, Chief Executive Officer +230 269 7090
Darren Veenhuis, Head of Investor Relations +44 779 512 3402
Morne Reinders, Investor Relations +27 82 480 4541
Maitland/AMO - Communications Adviser
James Benjamin +44 20 7379 5151
Vikki Kosmalska Grit-maitland@maitland.co.uk
Jason Ochere
finnCap Ltd - UK Financial Adviser
William Marle / Scott Mathieson / Matthew Radley
(Corporate Finance) +44 20 7220 5000
Mark Whitfeld (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
PSG Capital - JSE Sponsor and Corporate Adviser
David Tosi +27 21 887 9602
The Company's LEI is: 21380084LCGHJRS8CN05
NOTES:
Grit Real Estate Income Group Limited is a leading pan-African
real estate company focused on investing in 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 is targeting an annual dividend yield in US$ of
8.0%+p.a and a net total shareholder return inclusive of NAV growth
of 12.0%+ p.a.*
The Company currently holds primary listings on both the Main
Market of the London Stock Exchange (LSE: GR1T) and on the Main
Board of the Johannesburg Stock Exchange (JSE: GTR), with a
secondary listing on the Official Market of the Stock Exchange of
Mauritius Ltd (SEM: DEL.N0000).
Further information on the Company is available at
http://grit.group/
*These are targets only and not a profit forecast and there can
be no assurance that they will be met.
Directors:
Peter Todd+ (Chairman), Bronwyn Corbett (Chief Executive
Officer)*, Leon van de Moortele (Chief Financial Officer)*, Ian
Macleod+, Matshepo More, Nomzamo Radebe, Catherine McIlraith+,
David Love+, Sir Samuel Esson Jonah+ and Bright Laaka (Permanent
Alternate Director to Nomzano Radebe).
(* Executive Director) (+ independent Non-Executive
Director)
Company secretary: Intercontinental Fund Services Limited
Registered address: c/o Intercontinental Fund Services Limited,
Level 5, Alexander House, 35 Cybercity, Ebène 72201, Mauritius
Transfer secretary (South Africa): Computershare Investor
Services Proprietary Limited
Registrar and transfer agent (Mauritius): Intercontinental
Secretarial Services Limited
JSE sponsor: PSG Capital Proprietary Limited
Sponsoring broker: Axys Stockbroking Limited
SEM authorised representative and sponsor: Perigeum Capital
Ltd
This notice is issued pursuant to the JSE Listings Requirements,
the LSE Listing Rules, SEM Listing Rule 11.3 and Rule 5(1) of the
Securities (Disclosure Obligations of Reporting Issuers) Rules
2007. 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 or visit www.rns.com.
END
ACQUGUWWWUPBURA
(END) Dow Jones Newswires
March 05, 2019 07:00 ET (12:00 GMT)
Grit Real Estate Income (LSE:GR1T)
Historical Stock Chart
From Apr 2024 to May 2024
Grit Real Estate Income (LSE:GR1T)
Historical Stock Chart
From May 2023 to May 2024