Grit Real Est. Regulatory News (GR1T)

· For the period March to July 2020, the Group has collected 85.4% of the value of its attributable contracted rental revenue, which includes prepaid rent collected in the period.

· Short term concessions, and hence loss of revenue, have been agreed on 7.9% of Grit attributable contracted rental revenue over this period, primarily in the retail segment.

· Short term payment deferrals for the period of March to July 2020 have been agreed on 14.7% of Grit's attributable contracted rental revenue and are now due in the Company's next financial year and beyond, driven primarily by Mauritian government legislation in respect of the hospitality sector assets.

· David Love appointed as Senior Independent Director.

· The corporate accommodation, industrial and office sector assets, which collectively represent approximately 48% of Grit's total net asset value as at 31 December 2019, continues to see only limited impact to date, with collection of over 100% of contracted revenue since March 2020.

· Hospitality assets constituted 18.8% of Grit's total net asset value as at 31 December 2019. The Company does not have direct hospitality exposure as a result of its fully servicing triple net lease rental contracts with international leisure operators and the lease contracts are underwritten by the holding companies of the respective operators.

· Rent collections in Mauritius were postponed by government legislation for six months until September 2020, at which time normal rentals resume and outstanding balances accumulated over the period to September become collectible over the subsequent 16 months.

· New Mauritius Hotels Group (Beachcomber) resumed rental payments on 1 August 2020. By mutual agreement, payment terms under the lease have been amended to payable three months in arrears.

· The Lux Island Resorts Group is expected to resume rental payments from 1 September 2020, and outstanding rental payments will be collected through the period to December 2021.

· The recent oil spill off the south east coast of Mauritius has no direct impact on the Group's hospitality assets, which are located on the north east of Mauritius.

· The rental deferral agreed with Club Med remains in place up to 31 December 2020 as previously communicated.

· The Board remains confident in the creditworthiness of the Group's hospitality partners and their respective holding companies given their strong competitive positioning and as a result of strong government support programmes in both Mauritius and France.

· Retail assets constituted 32.1% of Grit's total net asset value as at 31 December 2019.

o The most significant impact has been in AnfaPlace shopping mall, which faced severe disruption as a result of its closure on 19 March 2020. Trading resumed on 25 June 2020 with promising footfall statistics since that date. The mall is the largest asset in the portfolio and makes up circa 10% of Grit attributable Group revenue as at 31 December 2019.

o The three-month closure will result in lower revenues in the Company's current financial year as a result of rental concessions. To ensure the long-term success of the mall, Grit is providing a combination of further concessions and rent deferrals to tenants for the period through to 31 December 2020, as the mall returns to normalised levels of trade.

o In February 2020, the Company announced that a small number of non-performing tenants had been evicted. Covid-19 lockdowns have resulted in delays in filling this space, and along with start date delays of new incoming tenants, reported vacancy statistics as at 30 June 2020 will rise from the reported figures at 31 December 2019.

o The Board remains positive on the medium-term prospects for the mall but now expects the recovery trajectory, post its relaunch in September 2019, to be delayed through the Company's next financial year.

o The Company announced on 12 February 2020 the conditional acquisition of a new OPCI / REIT vehicle in Morocco, and its intention both to introduce third party investors into its existing assets, including AnfaPlace, and to reduce exposures to Moroccan retail sector over the medium term.

· Grit is continuing to engage with all of its lenders, who have confirmed their continued support.

· As a precautionary measure, the Company continues to engage with its lenders on extension to LTV and interest cover covenants and interest holidays on loans attached to Covid-19 impacted properties, if required.

· The Group's lowest currently imposed LTV covenant stands at 53%. The Board expects downward pressures on its 30 June 2020 property valuations, predominantly in its retail and hospitality assets, but expects to maintain sufficient covenant headroom after adjusting for these impacts.

· By virtue of the Group's historic listing on the Johannesburg Stock Exchange, and in conjunction with its largest shareholder, the South African Government Employee Pension Fund ("GEPF") represented by the Public Investment Corporation ("PIC"), the Company facilitated its black economic empowerment and transformation partner, Drive in Trading ("DIT"), in the acquisition of 23.25 million Grit shares in June 2017.

· DIT secured a loan facility, with an initial break clause on 14 August 2020, from the Bank of America N.A ("BoAML") with the PIC providing a guarantee to BoAML in the form of a Contingent Repurchase Obligation ("CRO"). Separately, Grit indemnified the PIC for up to 50% of any potential losses suffered by PIC, capped at US$17.5 million.

· Although DIT is in advanced stages of refinancing its loan facility, PIC is expected to assume the position of lender to DIT following the expiry of the initial BoAML loan facility and exercise of the CRO by BoAML. Whilst reserving their rights, the PIC has advised Grit that it does not intend calling on the Grit guarantee at this time, giving DIT the opportunity to conclude its discussions with potential lenders. These discussions are anticipated to conclude before the end of September 2020, but this timeline may be extended. Further updates will be provided in due course.

· The contingent liability is accounted for in Grit's accounts under "Other Financial liabilities" at a fair value of USD$1,052,441 (31 December 2019). The movement in mark to market valuation is expected to result in an additional charge for the 30 June 2020 financial year end.

· On 24 July 2020 Catherine McIlraith, an Independent Non-Executive Director ("INED"), was appointed to the Nomination Committee;

· On 4 August 2020 David Love was appointed as Senior Independent Director and was also appointed to the Investment Committee; and

· On 4 August 2020 Catherine McIlraith was appointed as the Chairman of the Remuneration Committee. Catherine McIlraith remains chair of the Audit Committee.

· On 29 July 2020, the Company completed its de-listing from the Main Board of the JSE Limited (the "JSE") and is now primary listed on the LSE, with a secondary listing on the Stock Exchange of Mauritius Ltd ("SEM").

· On 3 August 2020, the Company's LSE stock quote was changed to Sterling, which is expected to provide broader access to investors in the United Kingdom and should result in improved liquidity over the medium term.

· The Group is intending to move to the premium listing segment on the LSE following the JSE de-listing and to facilitate the Group's eligibility for inclusion in the FTSE UK Index Series, the Group is further exploring the possibility of redomiciling its corporate seat to Guernsey.