Pan-African property company Grit Real Estate Income Group (Grit) says that it is on track to complete the acquisition of a controlling stake in developer Gateway Real Estate Africa (GREA) by May next year, which it says has the potential to unlock NAV and income growth.
GREA’s pipeline of development projects includes diplomatic housing let to the US government across the continent. Consequently, the composition of Grit’s portfolio could change dramatically over the next two years, with corporate accommodation exposure growing materially and the US Embassy becoming Grit’s largest tenant. Industrial and data centres are also prominent in the pipeline, while sales of properties in the retail and hospitality sectors are expected to further reshape the portfolio.
Grit says that the recent major restructuring of its debt and plans to further reduce its LTV should put it on a firm financial footing. It adds that a re-establishment of its dividend track record could contribute to a re-rating of its share price (which currently trades on a 49.5% discount).
21 Dec 2022
Grit Real Estate Income Group – Going for growth
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Grit Real Estate Income Group – Going for growth
Grit Real Estate Income Group Limited (GR1T:LON) | 21.0 0 0.0% | Mkt Cap: 103.9m
- Published:
21 Dec 2022 -
Author:
James Carthew | Matthew Read | Richard Williams -
Pages:
21
Pan-African property company Grit Real Estate Income Group (Grit) says that it is on track to complete the acquisition of a controlling stake in developer Gateway Real Estate Africa (GREA) by May next year, which it says has the potential to unlock NAV and income growth.
GREA’s pipeline of development projects includes diplomatic housing let to the US government across the continent. Consequently, the composition of Grit’s portfolio could change dramatically over the next two years, with corporate accommodation exposure growing materially and the US Embassy becoming Grit’s largest tenant. Industrial and data centres are also prominent in the pipeline, while sales of properties in the retail and hospitality sectors are expected to further reshape the portfolio.
Grit says that the recent major restructuring of its debt and plans to further reduce its LTV should put it on a firm financial footing. It adds that a re-establishment of its dividend track record could contribute to a re-rating of its share price (which currently trades on a 49.5% discount).