Grit signs lease agreement for office space

GRIT SIGNS LEASE AGREEMENT FOR OFFICE SPACE AT THE DEVELOPMENT AT THE PRECINCT, FOND DU SAC, MAURITIUS

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, today announces that the Group has entered into a five year USD denominated lease agreement with Gr1t House Limited, a special purpose vehicle ("SPV") established by Gateway Real Estate Africa Ltd ("GREA") for the development of a 10,028 sqm Grade A commercial office complex in Fond du Sac, Mauritius ("The Precinct").

Grit has contracted to occupy 2,020 sqm of gross lettable area in The Precinct, targeted for completion and occupation in the fourth quarter of 2022, at an independently verified market related base lease rate of USD 19.08 per sqm per month, increasing at a fixed rate of 2.5% per annum and is inclusive of 11 basement parking bays, 54 open parking bays and 52 sqm of storage space. An additional USD 1,081,215 fit out allowance has been agreed, which, when amortised over the lease period, adds an effective further USD 8.92 per sqm per month to the lease rate.

GREA (an associated company in which Grit holds a 19.98% interest) is a private real estate development company and is regarded as a related party of Grit by virtue of common shareholding by the Public Investment Corporation of South Africa, which holds a 48.5% interest in GREA and a 25.5% interest in Grit. As such, the transaction falls within Listing Rule 11.1.10 R of the UK's Financial Conduct Authority and the Board has followed its related party transactions policy and complied with UK listing rules applicable to premium segment listed companies. The transaction does not fall within the scope of Chapter 13 of the Listing Rules of the Stock Exchange of Mauritius Ltd ("SEM") pertaining to 'related party transactions'.

2 July 2021

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 is committed to delivering strong and sustainable income for shareholders, with the potential for income and capital growth. The Company is targeting net total shareholder return inclusive of NAV growth of 12.0%+ p.a.*

The Company holds its primary listing on the Main Market of the London Stock Exchange (LSE: GR1T), and a secondary listing on the SEM (SEM: DEL.N0000).

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

*               These are targets only and not a profit forecast and there can be no assurance that they 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 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

Company secretary address: Level 5, Alexander House, 35 Cybercity, Ebene, 72201, Mauritius

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

Mauritian Sponsoring broker: Capital Markets Brokers Ltd 

SEM authorised representative and sponsor: Perigeum Capital Ltd