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Grit Real Estate eyes 'attractive' Africa pipeline as returns remain on track

Pan-African property investor said it is on track to deliver its 12% total shareholder return target for the year to 30 June
Mozambique
New lease activity was centred around Mozambique, with clients including Exxon Mobil and Vale

Africa-focused Grit Real Estate Income Group (LON:GR1T) is intending to move to a premium London listing before the end of the year as it looks to drum up more cash to fund a large identified pipeline of “attractive potential investment opportunities”.

Grit, which currently manages a portfolio of 25 property assets across seven African countries, reported on Wednesday that it is on track to deliver its 12% total shareholder return target for the financial year to 30 June.

WATCH: Capital Network analyst on a 'very strong' period of growth for Grit Real Estate

The dividend, which is paid bi-annually, is also expected to grow from the US$12.19 per share paid in the previous financial year.

The company, which listed on the standard market in London last July, said it has identified a US$600mln pipeline of “attractive potential investment opportunities, diversified across sector and geography” and, having deployed its existing equity and debt capital, “is considering its options in respect of raising further capital to fund the pipeline in due course”.

Grit also announced that it has agreed a US$25mln contract to refurbish its Anfa Place shopping centre in Morocco, signing up Gateway Delta, in which it owns a 20% stake, as developer.

The current portfolio is 97.2%-occupied, up from 96% at the end of December, which was “predominantly let to high quality, multinational tenants”, and once the Anfa Place redevelopment is complete portfolio occupancy is expected to climb to 98.5%.

Grit said its connections in convenience shopping and proactive asset management initiatives “have assisted in offsetting the challenges faced in the retail sector across Africa”, while it “repositioned” a number of assets.

Chief executive Bronwyn Corbett said: "We are well placed with an excellent platform for growth and we look forward to capitalising on a significant and growing pipeline of investment opportunities that the company has currently identified."

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Grit Real Estate Income Group Timeline

CN Research
June 27 2019

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