Business
Acquisition of Club Med hotel & resort in Senegal
Acquisition of Club Med hotel & resort in Senegal.
About this update from Grit Real Estate Income Group Limited
[{"type":"text","content":"\n \nRNS Number : 5958G Grit Real Estate Income Group 24 July 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)\nSEM share code: DEL.N0000\nJSE share code: GTR\nLSE share code: GR1T\nISIN: MU0473N00036\n(\"Grit\" or the \"Company\" or the \"Group\")\n\n\n\n\n\n\n \n\n \n\nACQUISITION OF CLUB MED CAP SKIRRING HOTEL IN SENEGAL THROUGH A SALE AND LEASEBACK\n\n \n\n \nShareholders are advised that on 23 July 2019, the Company, through its wholly-owned subsidiary Casamance Holdings Limited (the \"Purchaser\"), entered into a sale and purchase agreement (the \"Agreement\") relating to the shares of Société Immobiliére et de Gestion Hôteliére du cap Skirring (\"SIGHC\") with Club Med SAS (the \"Seller\" or \"Club Med\").\n \nUnder the terms of the Agreement, the Company will acquire 100% of the shares in SIGHC (the \"Shares\"), the owner of the property known as Club Med Cap Skirring, a 4-trident hotel situated at the Club Med resort at Vacap Cap Skirring B.P 46 SN, Kabrousse 27009, Senegal (the \"Property\") and the rental enterprise conducted by SIGHC on the Property (\"Rental Enterprise\"), as a going concern, for a provisional purchase consideration of EUR 11.6 million (\"Provisional Purchase Consideration\"), subject to adjustments and settlement of Intra-Group Loan accounts as set out below (the \"Acquisition\"). \n \nUnder 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 EUR 25 million, capped at EUR 28 million. The development programme will be carried out by Club Med as SIGHC's appointed \"Owner's Agent\" who will be responsible for any cost overrun.\n \nRATIONALE FOR THE ACQUISITION\nClub Med is an operator of over 70 all-inclusive resort villages in holiday locations in 26 countries across five continents and has successfully been operating Club Med Skirring in Senegal since 1973. Club Med is primarily owned by Fosun International Limited, a Chinese international conglomerate and investment company listed on the Hong Kong Stock Exchange.\n \nGrit will enter into a strategic relationship through this sale and leaseback, and will target to provide further real estate solutions to Club Med across t...