CATEGORIES: Africa, Global Assets, Private Equity, REITs & Funds

Grit, a Pan-African income real estate fund, moves closer to listing on the London Stock Exchange

Grit Real Estate Income Group Limited (GRIT), a Pan-African income real estate company focused on real estate investment assets  in pre-selected African countries (excluding South Africa), has again announced its intention to seek a listing on the Official List of the United Kingdom Listing Authority and admission to trading on the main market for listed securities of the London Stock Exchange (“Admission”), in conjunction with an offer for subscription in the UK and a private placement of its Ordinary Shares in the UK, South Africa and Mauritius (together the “Issue”).

Here are the details of the issue:

  • The Company will issue up to 250 million new Ordinary Shares pursuant to the Issue.
  • The indicative price for the offer has been set at US$1.43 per Ordinary Share which is equivalent to the EPRA Net Asset Value1 per Ordinary Share of US$1.43 as at 31 March 2018.
  • The Company’s 214 million existing Ordinary Shares currently trade on the main board of the Johannesburg Stock Exchange (“JSE”) and the Official Market of the Stock Exchange of Mauritius Ltd (“SEM”). The application will be made to the UK Listing Authority for the Company’s existing and to be issued Ordinary Shares to be admitted to the Official List with a standard listing. The application will also be made for the existing and to be issued Ordinary Shares to be admitted to trading on the London Stock Exchange’s main market for listed securities.
  • Applications will also be made for the Ordinary Shares to be issued pursuant to the Issue to be admitted to the main board for listed securities of the JSE and to the Official Market of the SEM.
  • The Issue is expected to raise net proceeds of at least US$120 million. The net proceeds of the Issue will be used to acquire assets in Ghana and Mozambique, in addition to other existing and new territories, as well as reduce the Group’s overall level of gearing.
  • Initial Admission of the Company’s Ordinary Shares to the London Stock Exchange is expected in July 2018.
  • AXYS Corporate Advisory is acting as lead transaction adviser and Perigeum Capital is acting as the Mauritian transaction adviser. finnCap Limited is acting as UK financial adviser and joint UK placing agent. Baden Hill, a trading name of Northland Capital Partners Limited and Exotix Partners LLP are acting as joint UK placing agents. PSG Capital is acting as sponsor and placing agent in South Africa.

Commenting on today’s announcement, Bronwyn Corbett, Chief Executive Officer, said;

“Our planned listing on the London Stock Exchange will create a compelling opportunity for UK and other equity investors to gain exposure to the African real estate sector, which offers some of the best returns in the global property market. We have a proven track record of generating income from our selective and diversified range of assets, built through our close and detailed understanding of the region’s property investment environment. The listing will support our aim to grow our portfolio further and become the leading real estate owner on the African continent outside South Africa.”

Read more here.