(Alliance News) - Grit Real Estate Income Group PLC said Wednesday it hopes to carry out a placing to reduce debt and make progress on its investment pipeline.
The pan-African real estate company will place up to 280 million shares, but it did not disclose the price of the placing. However, it said it would not be less than the most recently published net asset value per share.
As at December 31, Grit reported a net asset value of USD1.356 per share. This implies a placing worth a minimum of USD379 million.
Proceeds from the placing will go towards reducing bank debt in line with the company's overall gearing target of between 35% to 40% loan to value.
In addition, Grit is looking to work on its current and future investment pipeline. There are 13 identified targeted acquisitions valued in excess of USD470 million ranging from completed assets to developments.
Grit will hold the general meeting on October 11, where it will propose the share issue to shareholders.
Shares in Grit Real Estate were untraded in London at USD1.36, as were Johannesburg shares on Wednesday at ZAR16.80.
Grit Real Est. (GR1T)