(Alliance News) - Grit Real Estate Income Ltd said Tuesday it has made solid progress on several acquisitions in its pipeline, including the completion of the purchase of Club Med Cap Skirring Hotel in Senegal.
The acquisition of the hotel resort for a total of EUR16.2 million was first announced in July. The initial price was EUR11.6 million, however the final consideration includes the conversion of a EUR4.0 million loan into equity, and a pre-development expense incurred by seller Club Med SAS.
Subject to development and regulatory approvals, Grit expects to start with the renovation and development works at the resort by the end of the first quarter of 2020, with a capped cost of EUR28.0 million.
In addition, Grit said it is continuing its work to meet conditions for the development funding and acquisition of the St Helene and Coromandel hospitals in Mauritius, and still expects to close the transaction by the end of March.
For the acquisition of Orbit Africa warehouse in Nairobi, Kenya, the company still expects to finish the acquisition by the end of March.
Meanwhile, for the purchase of a 50% stake in the PwC and Huawei head office in Accra, Ghana, Grit said the completion date has been extended to the end of February from the end of December.
Looking ahead, Grit said it is continuing to explore financing options to fund its acquisition pipeline.
"Concluding this first transaction with Club Med is a significant milestone and I look forward to progressing a number of the other opportunities with them across Africa, delivering real estate solutions and creating further value for Grit's shareholders and for Club Med," said Chief Executive Bronwyn Corbett.
"I am also pleased to report that the company's cost of debt continues to decline, helped by reductions in LIBOR. Furthermore, the group's high-quality diversified portfolio and strong multi-national tenant base leave us confident of providing shareholders with strong and sustainable income, with the potential for income and capital growth," Corbett added.
Shares in Grit Real Estate Income - which is based in Grand Baie, Mauritius - were untraded in London at USD1.19, while its Johannesburg shares were also last quoted at ZAR16.50 on Tuesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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