Grit Real Est. Regulatory News (GR1T)

Rent collection

· 103.8% of Grit attributable contracted rental revenue collected for the month of June 2021, improving the collection rate for the six months to 30 June 2021 to 93.6% (to 31 December 2020: 91.4%).

· For the financial year to June 2021, the Group has collected 92.5% of the value of its contracted rental revenue. Over this same period, the Group has provided rent concessions, resulting in reduced revenues of 5.6% and rent deferrals of a further 2.3% of contracted rental revenue.

EPRA vacancy

The Group's vacancy rate reduced to 5.3% at 30 June 2021 (31 December 2020: 8.0%) predominantly as a result of two new leases to Total in Commodity House Phase 1 and a number of leases signed in AnfaPlace Mall ("AnfaPlace") and the three retail malls in Zambia 

The retail segment still accounts for over 75% of the reported Group vacancy, of which AnfaPlace is the predominant contributor. Strong leasing activity is expected to result in continued vacancy improvements over the remainder of 2021.

Office, corporate accommodation and light industrial sectors

Corporate accommodation, industrial and office sector assets, which collectively represent over 51% of Grit's economic interest in property assets at 31 December 2020, remain materially unaffected to date.

Grit has experienced limited tenant turnover in its Ghanaian office portfolio and continues to work with Vale in relation to their corporate accommodation needs in relation to a possible divestment of their mining operations in Mozambique.

Hospitality sector

Hospitality assets constituted 24.7% of Grit's economic interest in property assets at 31 December 2020. The Company does not have direct occupancy and operational cost exposure in the hospitality sector as a result of its fully servicing triple net lease rental contracts with international leisure operators.

· Mauritian borders were partially opened from 15 July 2021 to resort restricted tourist travel. The Mauritian government announced that the remaining border restrictions are to be lifted from 1 October 2021 upon which the island's hospitality sector is expected to return to normal operations. Both of Grit's Mauritian operators have received strong government support including liquidity support from the Mauritian Investment Corporation, which is now supporting the resumption of lease payments to Grit.

o The Lux Group are up to date on current rentals and have repaid over c.50% of arrears (rent deferrals granted in 2020) in respect of the Tamassa resort.

o The remaining three Mauritian hotels in Grit's portfolio are tenanted to the New Mauritius Hotels Group (NMH), owned by a large Mauritian conglomerate, who have resumed partial rental payments. Grit has granted limited tenant support through:

§ Providing cashflow deferrals of c.50% of monthly rental value, retrospectively applied for the period 1 December 2020 until the earlier of, reopening of the Mauritian borders without major restrictions or 1 December 2021. Such cashflow deferral will be collected over the subsequent 48-month period.

· Club Med have been granted lease concessions pertaining to Cap Skirring, Senegal resort for the period 1 January 2021 to October 2021 upon which time the resort is expected to reopen.

Retail sector

Retail assets constituted 22.9% of Grit's economic interest in property assets at 31 December 2020 and are split between an enclosed shopping mall in Morocco (AnfaPlace) and convenience shopping and service orientated strip malls.

· Grit has provided a combination of concessions and rent deferrals to tenants in AnfaPlace in anticipation of the asset returning to normalised levels of trade post the 2019 redevelopment and the more recent Covid disruptions. Morocco has increasingly lifted domestic restrictions resulting in encouraging Anfa footfall statistics in May, June and July 2021, which are substantially higher than 2020 comparatives and c.20% higher than pre 2019 redevelopment levels

· Further progress on lease renewals in Mukuba Mall, Zambia have been made after 88% of the leases expired in March 2020. As at 30 June 2021 the mall is 98.51% let.

· Cosmo Mall (Lusaka, Zambia) and Mall de Tete (Tete, Mozambique) continue to experience elevated levels of vacancies, however the Group expects improved leasing activity through to 31 December 2021.

Gateway Real Estate Africa Developments

Through its 19.98% equity interest in Gateway Real Estate Africa ("GREA"), the private African property development company co-founded by Grit, the Group has a minority interest in and exposure to GREA's accretive pipeline of development projects, assets and returns and has access to its attractive completed assets. Strong progress has been made by GREA in the 12 months to 30 June 2021, including:

· OBO Ethiopia corporate accommodation: Near completion of a 112-unit diplomatic residential building predominantly tenanted to OBO, a division of the US state department, which is now being readied for occupation in mid-September 2021. Estimated total project cost of c.US$54 million.

· OBO Kenya diplomatic accommodation: The construction on a 90-unit diplomatic apartment and town house community predominantly tenanted to OBO, a division of the US state department, commenced at the end of 2020 with expected completion date in Q1 2022. Estimated total project cost of c. US$48.5 million.

· Metroplex Shopping Mall, Uganda: Redevelopment of the prime 13,000m2 gross lettable area ("GLA") shopping mall in a prime location in Kampala in Uganda was completed in May 2021 at a cost of US$19.9 million. The prime shopping mall is now anchored by Carrefour and is positioned as a primary shopping destination, dining and entertainment hub.

· The Precinct, Mauritius: Commencement of a landmark c.10 000m2 GLA grade-A office development in Grand Baie in Q2 2021. Targeted completion Q4 2022. Estimated total project cost of c. US$31 million.

The Group sees significant further potential value creation from the assets and development pipeline within GREA going forward.

This notice is issued pursuant to the FCA Listing Rules and 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.