Further to the announcement on 20 May 2022 (link here), the board of Directors (the "Board") of Grit Real Estate Income Group Limited today confirms the completion of a 30% co-investment by Letlole La Rona Limited ("LLR") into Grit's industrial facility in Nairobi, Kenya (the "Asset"), currently tenanted to Orbit Products Africa Ltd.

Conditions precedent have now been met, including LLR obtaining all necessary approvals, for the acquisition of a 30% shareholding in the Mauritian holding entity of the Asset. The total acquisition value is US$7.23 million, which is being made through a combination of equity subscription and Grit shareholder loan repayments.

An additional acquisition fee of US$600,000 is being earned by Grit from LLR following the completion of the Asset transaction. Grit will also earn an annual asset management fee of 0.5% of the value of the Asset by virtue of the asset management agreement between Grit and the Asset's Mauritius holding entity.

Grit expects to utilise the cash proceeds to further increase the Company's interest in Gateway Real Estate Africa ("GREA") to 35.01% by 31 July 2022. This is the penultimate step towards Grit acquiring a controlling interest in GREA by 31 December 2022 as previously announced by Grit (link to detailed announcement here).

Bronwyn Knight, CEO of Grit commented:

"This is a ground-breaking transaction for Grit that monetises our know-how and underpins our asset management objectives.

Moreover, it cements an authentic partnership, as Grit will use our capital market experience to play an integral role in LLR's risk-mitigated 'Go-to-Africa' strategy, providing otherwise inaccessible, value-accretive co-investment opportunities across the continent.  

"I am proud of the fact that LLR is woman-led. The development of individuals, companies, and the markets in which we operate has always been part of our business fabric. This pioneering transaction unlocks value for both Grit and LLR investors, and importantly, the Botswanan communities we serve."

By Order of the Board

18 July 2022

FOR FURTHER INFORMATION, PLEASE CONTACT:

NOTES:

Grit Real Estate Income Group Limited is the leading pan-African real estate company focused on investing in, developing 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 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.