DISPOSAL OF ABSA HOUSE IN EBENE, MAURITIUS

CAUTIONARY ANNOUNCEMENT IN RELATION TO ITS SALE

Shareholders are advised that the Company, through its wholly-owned subsidiary Grit Services Limited ("GSL"), has signed a Share Sale and Purchase Agreement ("SPA") with Lavastone Ltd ("Lavastone") for the sale of BH Property Investments Ltd ("BH Property"), the holding company of Absa House office building in Ebene, Mauritius.

The transaction comprises the sale of 100% of GSL's interests in BH Property and the underlying asset; two plots of leasehold land totaling 8,099 sqm and a gross lettable area of 8,669 sqm (the "Property"), at a disposal value of MUR533 million (US Dollar 12.2 million at current MUR-US Dollar exchange rate of 43.78) for the Property, which equates to a 7.75% yield. The anchor tenant is Absa Bank (Mauritius) Ltd, occupying 86% of the lettable space, while the book value of the Property at 31 December 2021 is MUR 541.2 million (US Dollar 12.4 million). Inclusive of transaction costs, the net sale proceeds to Grit are expected to be approximately MUR 180 million, or US Dollar 4.1 million, which will be applied towards the Company's revolving credit facilities and further debt reduction.

Bronwyn Knight, CEO of Grit Real Estate Income Group Limited, commented:

"In line with the Company's asset recycling strategy, Grit expects to initially apply the net proceeds of the transaction to reducing its debt levels ahead of recycling proceeds, over the medium term, into its higher-yielding secured strategic pipeline that is expected to further enhance the resilience of the Group's portfolio and result in increased distributable income and enhanced capital value to Grit's shareholders."

The transaction remains subject to conditions precedent in favour of both parties, which are expected to be cleared, and with the transaction reaching final closing during the first quarter of 2022.  A further announcement will be released to the market once all the conditions precedent relating to this transaction are cleared.

By Order of the Board

26 January 2022

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU no. 596/2014) (as amended) as it forms part of UK domestic law by virtue of the European union (withdrawal) act 2018 and other implementing measures. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

NOTES:

Grit Real Estate Income Group Limited is the 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 holds its primary listing on the Main Market of the London Stock Exchange (LSE: GR1T and a secondary listing on the Stock Exchange of Mauritius (SEM: DEL.N0000).

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

Directors: Peter Todd+ (Chairman), Bronwyn Knight (Chief Executive Officer)*, Leon van de Moortele (Chief Financial Officer)*, David Love+, Sir Samuel Esson Jonah+, Nomzamo Radebe, Catherine McIlraith+, Jonathan Crichton+, Cross Kgosidiile⁺ and Bright Laaka (Permanent Alternate Director to Nomzamo Radebe).

(* Executive Director) (+ independent Non-Executive Director)

Company secretary: Intercontinental Fund Services Limited

Registered address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 4HP

Registrar and transfer agent (Mauritius): Intercontinental Secretarial Services Limited

UK Transfer secretary: Link Asset Services Limited 

SEM authorised representative and sponsor: Perigeum Capital Ltd

Mauritian sponsoring broker: Capital Markets Brokers Ltd

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.