Grit Real Estate Income Group (GR1T) Grit Real Estate Income
Group: PARTIAL SALE OF INTEREST IN LETLOLE LA RONA LIMITED,
BOTSWANA 08-March-2023 / 07:20 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")
PARTIAL SALE OF INTEREST IN LETLOLE LA RONA LIMITED,
BOTSWANA
The board of Directors (the "Board") of Grit Real Estate Income
Group Limited, a leading and award-winning pan-African impact real
estate company focused on investing in, developing and actively
managing a diversified portfolio of assets underpinned by
predominantly USUSD and Euro denominated long-term leases with high
quality multi-national tenants announces the disposal of a further
2.29% interest in Letlole la Rona ("LLR"), an associate owning
predominantly industrial assets in Botswana (the "Disposal"),
resulting in Grit's interest in LLR reducing to 11.25%.
Grit yesterday executed a sale of 6,421,000 shares on the
Botswana Stock Exchange (the "BSE") at a price of 3.51 Bostswanan
Pula ("BWP") per share in cash, representing a 12.7% premium to the
last published LLR NAV as at 31 December 2022. Sale proceeds amount
to BWP 22.5 million (USUSD 1.7 million).
The Disposal is in addition to: i. a sale executed in December
2022 when the Group disposed of a 6.79% equity interest (19,000,000
shares)at BWP 3.48 per share in cash, a 15% premium to last
reported NAV at that date. Sale proceeds amounted to BWP
66.1million (USUSD 5.2 million); and ii. a sale executed in
February 2023 when the Group disposed of 4.77% equity interest
(13,347,068 shares) atBWP3.51 per share in cash, amounting to a
sale proceeds of BWP 46.8 million (USUSD 3.5 million), representing
a 12.7%premium to the last published LLR NAV as at 31 December
2022.
The Disposal, when aggregated with the above trades, results in
Grit's interest in LLR reducing from 25.1% as at 30 June 2022 to
11.25% today.
Bronwyn Knight, CEO of Grit Real Estate Income Group Limited,
commented:
"The disposal by Grit of a 13.85% 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 alongside fellow
large investors, 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, which are expected to deliver near and
longer term value creation and growth opportunites in net asset
value and income, for the benefit of all our stakeholders,
including the people of Africa."
Further detail on the LLR investment, Grit's investment strategy
and the impact to Grit on the sale
Grit invested in LLR in 2019 when the BSE listed variable loan
stock company owned 20 properties worth BWP 774 million (c. USUSD
73 million), and a Net asset value of BWP 744 million As(c. USUSD
70.8 million). Grit partnerned with the Botswana Development
Corporation ("BDC") on their ambition to build improved Board
composition controls and for sharing of intellectual property to
strengthen LLR's real estate operating processes and procedures.
LLR is now one of the best performing stocks on the BSE, trading at
12.7% premium to NAV as well as having exposure to exciting
expansion opportunities embedded in a "Go to Africa" strategy, with
Grit alongside as a trusted partner.
As of 31 December 2022, LLR holds direct investments in 24
properties and has a property portfolio valued at BWP 1.2 billion
with a Net asset value of BWP 872 million (c. USUSD 68.3 million),
which has represented significant growth since 2019.
In 2023, as part of Grit's renewed focus on controlling its real
estate assets, prioristisng exposure to US Dollar revenues and
pursuing a revised growth strategy articulated under the Grit 2.0,
the Board has chosen to redeploy its equity currently invested in
LLR into further resilient African impact development assets.
The gross property assets which are the subject of the
transaction are USUSD11.6 million, being 13.85% of the LLR's
properties valued at a book value of USUSD 83.5 million on 31
December 2022. The profit attributable to the 13.85% interest in
the financial year to 30 June 2022 was USUSD 1.3 million, which
included a fair value movement on investment property of USUSD0.3
million in that year. Funds received from the transaction are
expected to be applied towards Grit debt reduction, replenishment
of liquidity reserves over the short term, and redeployment into
acquisitions and future Group projects over the medium term.
The Group continues to target 20% asset recycling, equating to a
value of up to USUSD160.0 million. This transaction is therefore
expected to be a meaningful contributor to the Group's asset
recycling target being attained by 31 December 2023.
By Order of the Board
8 March 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 USUSD 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+ and Cross Kgosidiile.
(* 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.: 228168
EQS News ID: 1577117
End of Announcement EQS News Service
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