LONDON, UK: The board of Directors of Grit Real Estate Income Group Limited, a number one pan-African actual property company, introduced that all of the conditions precedent associated to the Share Purchase Agreement governing the Orbit Africa sale-and-leaseback transaction in Nairobi, Kenya, have been fulfilled and that such acquisition has now been accomplished by the Company.
The acquisition follows earlier bulletins by the Company on 2 July 2021 associated to its elevating of a US$ 25 million debt facility from the International Finance Corporation (IFC), the funding arm of the World Bank, and on thirteen October 2021 associated to the US$ 31.5 million perpetual note to Ethos Mezzanine Partners GP Proprietary Limited and BluePeak Private Capital GP.
The Board looks ahead to the profitable completion of the redevelopment and expansion of the Orbit Africa warehousing and manufacturing facility, which is anticipated to be accomplished within the fourth quarter of 2023 when it will be let on a brand new 20-year triple net lease to Orbit Products Africa Limited.
The total funding within the property is anticipated to be US$53.6 million (incl. VAT), comprising of the preliminary sale and leaseback on a brand new 25-year US dollar denominated triple net lease to Orbit Products Africa Limited at a net acquisition yield of 9.60%, alongside the redevelopment and expansion of the facility at an attractive contractual development yield of 16.0%.
The Company expects the transaction to be accretive to the Company’s NAV and earnings from inception and to realise attractive sustainable capital worth enhancement and rental income growth.
The Orbit Africa Facility upgrades are anticipated to create lengthy lasting positive social, financial and environmental advantages for native communities and assist to additional strengthen the broader precinct as a prime logistics and provide chain hub, while the property will moreover profit from being considerably improved to today’s modern FMCG industry requirements and achieving an IFC EDGE inexperienced constructing certification.
Bronwyn Knight, CEO of Grit Real Estate Income Group Limited, commented: “We are happy to full this transaction, which will additional increase Grit’s publicity to Kenya and the broader light industrial sector, which is anticipated to be accretive from inception to each Grit’s NAV and earnings, delivering enhanced sustainable worth to our shareholders while creating lengthy lasting positive social, financial and environmental advantages for native communities.”
Grit Real Estate Income Group Limited is the main pan-African actual property firm focused on investing in, developing and actively managing a diversified portfolio of assets in carefully chosen African countries (excluding South Africa). These high-quality assets are underpinned by predominantly US$ and Euro denominated long-term leases with a variety of blue-chip multi-national tenant covenants throughout a various vary of robust property sectors.
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