Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksGrit Real Est. Regulatory News (GR1T)

Share Price Information for Grit Real Est. (GR1T)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 20.50
Bid: 20.00
Ask: 21.00
Change: -0.50 (-2.38%)
Spread: 1.00 (5.00%)
Open: 21.00
High: 21.00
Low: 20.50
Prev. Close: 21.00
GR1T Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Acquisition of Additional Interest in LLR

20 Nov 2019 07:00

RNS Number : 9760T
Grit Real Estate Income Group
20 November 2019
 

GRIT REAL ESTATE INCOME GROUP LIMITED

(Registered by continuation in the Republic of Mauritius)

(Registration number: C128881 C1/GBL)

SEM share code: DEL.N0000

JSE share code: GTR

LSE share code: GR1T

ISIN: MU0473N00036

("Grit" or the "Company" or the "Group")

 

 

ACQUISITION OF ADDITIONAL 23.75% INTEREST IN BOTSWANA LISTED LETLOLE LA RONA LIMITED

 

 

The board of Directors (the "Board") of Grit Real Estate Income Group Limited, a leading pan-African income 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, announces that the Company entered into a sale and purchase agreement (the "Agreement") on 19 November 2019 with Botswana Development Corporation Limited ("BDC") whereby Grit Services Limited ("GSL"), a wholly-owned subsidiary of Grit, will acquire 66,500,000 linked units (comprising an ordinary share indivisibly linked to one variable unsecured debenture) in the issued share capital of Letlole La Rona Limited ("LLR") for an effective purchase consideration of US$ 13.8 million (the "Purchase Consideration"), to be settled through the issuance of new ordinary shares in Grit (the "Transaction").

 

The Transaction increases the Company's overall shareholding in LLR from 6.25% to 30.0% and represents a significant expansion of Grit's strategy in Botswana, a strong and politically sound economy and an investment grade country, which grew at 4.6% in real terms in 2018 and with one of the highest GDP per capita in Africa.

 

The Purchase Consideration will be settled through the issuance of new shares in Grit at US$ 1.40 per share, being the Company's most recently reported European Public Real Estate Association Net Asset Value ("EPRA NAV") per ordinary share, as at 30 June 2019, exclusive of dividends of US$ 6.95 cents per share paid in November 2019.

 

Bronwyn Corbett, Chief Executive Officer of Grit, said:

"We are pleased to announce this further increase of our stake in LLR, which represents an opportunity to utilise LLR's local expertise and to gain exposure to exciting asset management opportunities whilst significantly increasing our presence in Botswana, a key market for Grit's future growth. I look forward to working with Chikuni Shenjere-Mutiswa and the LLR team to expand its leading property portfolio and creating further value for shareholders in both Grit and LLR."

 

Chikuni Shenjere-Mutiswa, Chief Executive of LLR, said:

"I'm proud of what LLR has achieved in the eight years since the company listed on the Botswana Stock Exchange. We are very excited about the prospects for the business through our collaboration with Grit as LLR becomes Grit's partner of choice for real estate in Botswana and the wider region, delivering strong portfolio growth, as well as a sustainable income stream for shareholders."

 

OVERVIEW OF LLR

LLR, a variable loan stock company that listed on the Botswana Stock Exchange (the "BSE") on 15 June 2011, is a key player in the real estate market in Botswana.

 

At 30 June 2019, being the date of the last audited annual financial statements, LLR owned 20 properties worth BWP 774 million (c. US$ 73 million), the majority of which are located in the greater Gaborone area. 56.2% of LLR's portfolio was in the industrial sector, 30.3% in retail, 6.3% in commercial and 6.2% in residential. LLR disposed of all its hospitality assets for a total consideration of BWP 235 million (c. US$ 22 million) in the financial year ended 2019, the proceeds of which will be deployed into LLR's pipeline of yield-enhancing investment opportunities. As at 30 June 2019, LLR had a loan-to-value ratio of less than 35%.

 

RATIONALE FOR THE PROPOSED TRANSACTION

Botswana, as an investment jurisdiction, satisfies Grit's key investment criteria given its economic growth, politically sound environment, investment grade rating, availability of debt funding, ease of repatriation of funds and security around land tenure.

 

The Transaction is expected to help Grit increase its exposure to the Botswana property market with sufficient scale and corporate infrastructure and unlocks a strategic partnership with BDC as both an institutional investor in Grit and a potential co-investor in direct property opportunities throughout Africa.

 

BDC is a development finance institution founded in 1970, with the Government of Botswana as its sole shareholder. As the country's main agency for development, BDC remains the biggest investor in Botswana with total assets of BWP 4.1 billion (c. US$ 394 million) as at 30 June 2018.

 

The Transaction enables further exposure to investment grade Africa, an increased weighting in the industrial sector and a strong platform for asset management opportunities in an exciting, stable and growing region. Furthermore, LLR's listing and track record on the BSE helps to provide Grit with access to new domestic capital markets.

 

SETTLEMENT OF PURCHASE CONSIDERATION, ADMISSION AND TOTAL VOTING RIGHTS

The Purchase Consideration will be settled by the Company through the issuance and allotment of 9,839,511 Grit shares ("Consideration Shares"), equivalent to US$ 13.8 million. The Consideration Shares will be held by BDC in dematerialised form. The issue price is US$ 1.40 per Grit share, being the Company's last audited EPRA NAV per ordinary share at 30 June 2019, exclusive of dividends of US$ 6.95 cents per share paid in November 2019.

 

Following the issue, the Consideration Shares will comprise approximately 3.1% of the enlarged issued share capital comprising of 316,235,546 Grit shares. Each Grit share carries one voting right and the figure of 316,235,546 may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the share capital of the Company.

 

Subject to receipt of all relevant Exchange approvals, the Consideration Shares will be admitted to trading and listed on each of the Main Market of the London Stock Exchange plc, the Main Board of the JSE Limited and the Official Market of the Stock Exchange of Mauritius Ltd ("Admission") and Admission is expected to take place in November 2019. On Admission, the Consideration Shares will rank pari passu with the Company's existing ordinary shares.

 

FINANCIAL INFORMATION

As at 30 June 2019, being the date of its last audited annual financial statements, the consolidated net asset value of LLR was BWP 744,056,542 (c. US$ 70,090,126) and profits after tax for the year ended 30 June 2019 was BWP 53,073,048 (c. US$ 4,990,145).

 

By Order of the Board

 

20 November 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 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), while its listing on the Official Market of the Stock Exchange of Mauritius Ltd is termed as a secondary listing (SEM: DEL.N0000).

 

Further information on the Company is available at http://grit.group/

 

* This is a target only and not a profit forecast and there can be no assurance that it will be met. Any forward-looking statements and the assumptions underlying such statements are the responsibility of the Board of directors and have not been reviewed or reported on by the Company's external auditors.

 

Directors:

Peter Todd+ (Chairman), Bronwyn Corbett (Chief Executive Officer)*, Leon van de Moortele (Chief Financial Officer)*, Ian Macleod+, Nomzamo Radebe, Catherine McIlraith+, David Love+, Sir Samuel Esson Jonah+, and Bright Laaka (Permanent Alternate Director to Nomzamo 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

Corporate advisor and JSE sponsor: PSG Capital Proprietary Limited

SEM authorised representative and sponsor: Perigeum Capital Ltd

 

This notice is issued pursuant to the LSE Listing Rules, JSE Listings Requirements, SEM Listing Rule 11.3 and the Mauritian Securities Act 2005. The 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
 
 
ACQUKSARKRAAAUA
Date   Source Headline
28th Feb 20247:01 amEQSAbridged unaudited interim results 31/12/2023
28th Feb 20247:00 amEQSDividend declaration
28th Feb 20247:00 amEQSAvailability of results
28th Feb 20247:00 amEQSBoard and Executive changes
20th Feb 20247:00 amEQSNotice of results and investor presentation
16th Feb 202410:00 amEQSResults of General Meeting: Bora and Acacia Estate disposals
29th Jan 202412:30 pmEQSDisposal of interests in Acacia Estates and Bora Africa to the group’s development subsidiary, Gateway Real Estate Africa
19th Dec 20237:00 amEQSBoard and Executive changes
18th Dec 20231:39 pmEQSResult of AGM
24th Nov 202311:00 amEQSNotice of AGM
24th Nov 20237:00 amEQSPDMR trades
15th Nov 202311:00 amEQSPDMR dealings
9th Nov 20231:00 pmEQSPDMR dealings
31st Oct 20237:02 amEQSFull year audited results for the year ended 30 June 2023
31st Oct 20237:00 amEQSAvailability of results
9th Oct 202312:00 pmEQSNotice of full year results and investor presentation
5th Oct 20237:00 amEQSCommittee Changes
28th Sep 20237:00 amEQSPDMR transfers
27th Sep 20231:00 pmRNSUpdate from QuotedData
12th Sep 20238:00 amEQSHolding(s) in Company
26th Jul 20237:00 amEQSAcquisition of controlling interest of Gateway Real Estate African Limited ('GREA') and African Property Development Managers Limited ('APDM')
22nd Jun 20237:00 amEQSSale of remaining interest in Letlole La Rona Limited
5th Jun 202312:00 pmEQSGrit Real Estate Income Group: Research Note
10th May 20238:00 amEQSCapital Markets Day and Transactions update
28th Mar 20237:00 amEQSCapital Markets day and Asset Tours
24th Mar 20237:00 amEQSBoard Appointment
8th Mar 20237:21 amEQSGrit Real Estate Income Group: PARTIAL SALE OF INTEREST IN LETLOLE LA RONA LIMITED, BOTSWANA
24th Feb 20237:00 amRNSDeemed Disposal & Announcement in BHI
24th Feb 20237:00 amRNSAvailability of Unaudited Interims ended 31/12/22
24th Feb 20237:00 amRNSDividend Declaration
24th Feb 20237:00 amRNSAbridged Unaudited Interim results ended 31/12/22
13th Feb 202310:00 amRNSNOTICE OF HALF YEAR RESULTS
6th Feb 20237:00 amRNSCHANGE TO THE BOARD OF DIRECTORS
25th Jan 20234:40 pmRNSSecond Price Monitoring Extn
25th Jan 20234:35 pmRNSPrice Monitoring Extension
21st Dec 202210:02 amRNSUpdate research from QuotedData
15th Dec 20227:00 amRNSExtension to phase 3 option to acquire GREA
12th Dec 20227:00 amRNSTransaction in Own Shares
30th Nov 202212:00 pmRNSResult of AGM
30th Nov 20227:00 amRNSAccretive resolution to Drive In Trading structure
28th Nov 202210:22 amRNSTransaction in Own Shares
10th Nov 20227:00 amRNSHolding(s) in Company
28th Oct 20227:00 amRNSAvailability of results
28th Oct 20227:00 amRNSNotice of AGM
28th Oct 20227:00 amRNSDividend Declaration
28th Oct 20227:00 amRNSShare buyback and liquidity programme
28th Oct 20227:00 amRNSAnnual Results 2022
20th Oct 20227:00 amRNSNotice of Full Year Results
19th Oct 20227:00 amRNSDebt refinancing & syndication for up to US$306m
7th Oct 20221:25 pmRNSResults of the General Meeting

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.