Business
Acquires additional 25% of Mukuba Mall
Acquires additional 25% of Mukuba Mall.
About this update from Grit Real Estate Income Group Limited
[{"type":"text","content":"\n \nRNS Number : 8680R Grit Real Estate Income Group 05 March 2019 \n\n\n\n\nGRIT REAL ESTATE INCOME GROUP LIMITED\n(Registered by continuation in the Republic of Mauritius)\n(Registration number: C128881 C1/GBL)\nLSE share code: GR1T\nSEM share code: DEL.N0000\nJSE share code: GTR\nISIN: MU0473N00036\n(\"Grit\" or the \"Company\" or, together with its subsidiaries, the \"Group\")\n\n\n\n\n\n\n\n \n\n \n\nACQUISITION OF AN ADDITIONAL 25% SHAREHOLDING IN MUKUBA MALL, IN KITWE, ZAMBIA\n \n\n \nThe board of directors of Grit Real Estate Income Group Limited (the \"Board\"), a leading pan-African real estate company focused on investing in and actively managing a diversified portfolio of assets underpinned by predominantly US$ and Euro denominated long-term leases with high quality multi-national tenants, is pleased to announce that the Group, through its wholly owned subsidiary Zambian Property Holdings (\"ZPH\"), has entered into a subscription of shares agreement (the \"Agreement\") with Paxton Investments Limited (\"Paxton\"), whereby ZPH will acquire 8,191,050 new shares in Paxton for total consideration of US$8,191,050 (the \"Transaction\"). \n \nFollowing completion of the Transaction, ZPH will own approximately 99.9 per cent. of the issued share capital of Paxton, which in turn owns a 25 per cent. interest in Mukuba Mall Limited (\"MML\"), the underlying 100 per cent. holding entity of Mukuba Mall in Kitwe, Zambia. Following completion of the Transaction, Grit's total interest in MML will be 75 per cent. (currently 50 per cent.). \n \nBronwyn Corbett, Chief Executive Officer of Grit Real Estate Income Group Limited, commented:\n\"This acquisition of a further 25 per cent. shareholding in Mukuba Mall allows the Company to expand its total exposure to 75 per cent. in this well performing, fully let, dominant retail offering that is well positioned in Kitwe and is expected to deliver further value to shareholders through NAV and distribution accretion. \n \nSince the Company acquired its initial 50 per cent. shareholding in Mukuba Mall in 2015, we have seen positive valuation uplift, rental growth and low vacancy. We are confident that Mukuba Mall remains extremely well placed to continue its growth trajectory despite wider retail industry challenges. This transaction further stren...