Earlier this week, GRIT announced its first investment in Senegal through the acquisition of 100% shares in Club Med Cap Skirring Resort for a total consideration of €11.6 million.
The investment transaction is “sale and purchase” agreement between GRIT and Club Med, which entails the purchase of 100% of the shares Société Immobiliére et de Gestion Hôteliére du cap Skirring (SIGHC), the company that owns Club Med Cap Skirring. Under the terms of the Agreement, Club Med, acting on behalf of SIGHC, will renovate part of the hotel and expand it at a development cost of €25 million, capped at €28 million.
GRIT Real Estate Income Group Limited is a 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). It is present in 8 African countries including Morocco, Ghana, Botswana, Zambia, Kenya, Mauritius, Mozambique and Senegal. This is GRIT’s 26th property and the 8th country added to their property portfolio.
According to their website, they currently own a total of $730.2 million property value/acquisition price in the real estate market across Africa and a sum of $143.4 in the hospitality. Also, as stated in the Trading Update report published in June 2019, GRIT also mentioned that it had identified pipeline of potential new investment opportunities, predominantly in the industrial, corporate accommodation and hospitality sectors in Africa.
Club Med Cap skirring is a 4-trident hotel and resort village and an all-inclusive beachfront resort with a gross lettable area of 16,462m² situated on the southern nib of Senegal surrounded by the Atlantic. It is operated by Club Med, a brand known to operate luxury resorts in different locations across 5 continents. Club Med currently operates a total of 71 resorts and is primarily owned by a Chinese international conglomerate and investment company known as Fosun International Limited.
As stated by the Chief Executive Officer of GRIT, Bronwyn Corbett,
“The acquisition of Club Med Cap Skirring will not only proffer GRIT an entrance into the real estate market in Senegal but also add one of Africa’s most politically stable and fastest-growing markets to Grit’s current geographic footprint”.
Upon completion of this acquisition, Club Med is expected to expand its operation of hotels and also operate an additional flight from Brussel airport, Belgium, to Dakar airport, Senegal thereby boosting the growth of its local economy through the creation of more employment and generation of more income.