African property company Grit Real Estate Income Group (Grit) believes that it has cleared a path for increased dividend distributions and NAV growth following a potentially decisive piece of corporate action in the form of a heavily NAV dilutive capital raise. It has used the proceeds to bring down its loan to value (LTV) under control and to expand its core business with the acquisition of a developer and asset manager.
Grit’s manager says that the developer – Gateway Real Estate Africa (GREA) – has an attractive pipeline of NAV accretive development projects, most notably diplomatic residences across the continent let to the US government and data centres (see page 4 for an in-depth look at the development pipeline). Meanwhile, within its current portfolio, its hospitality assets are rebounding with the return of international travel, and retail valuations seem to have bottomed out – suggesting valuation growth in these sectors. Grit also has plans to ramp up exposure to the industrial sector, which the manager says is chronically undersupplied across Africa.
05 Jul 2022
Grit Real Estate Income Group - Transition underway
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Grit Real Estate Income Group - Transition underway
- Published:
05 Jul 2022 -
Author:
James Carthew | Matthew Read | Richard Williams -
Pages:
15
African property company Grit Real Estate Income Group (Grit) believes that it has cleared a path for increased dividend distributions and NAV growth following a potentially decisive piece of corporate action in the form of a heavily NAV dilutive capital raise. It has used the proceeds to bring down its loan to value (LTV) under control and to expand its core business with the acquisition of a developer and asset manager.
Grit’s manager says that the developer – Gateway Real Estate Africa (GREA) – has an attractive pipeline of NAV accretive development projects, most notably diplomatic residences across the continent let to the US government and data centres (see page 4 for an in-depth look at the development pipeline). Meanwhile, within its current portfolio, its hospitality assets are rebounding with the return of international travel, and retail valuations seem to have bottomed out – suggesting valuation growth in these sectors. Grit also has plans to ramp up exposure to the industrial sector, which the manager says is chronically undersupplied across Africa.