Business
Acquisition of new REIT & assets in Morocco
Acquisition of new REIT & assets in Morocco.
About this update from Grit Real Estate Income Group Limited
[{"type":"text","content":"\n \nRNS Number : 7601C Grit Real Estate Income Group 12 February 2020 \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 NEW REIT VEHICLE AND ASSETS IN MOROCCO AND POTENTIAL FOR INCLUSION OF FURTHER ASSETS AND CO-INVESTORS INTO THE REIT\n\n \n\n \nThe board of Directors (the \"Board\") of Grit Real Estate Income Group Limited, a leading pan- African income 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, announces that today the Company entered into a non-binding, conditional Memorandum of Agreement (\"MoA\") with, inter alia, Société Soprima (the \"Soprima\") and Residence Massirat Al Houda (\"MAH\" or \"Seller\"), a subsidiary of Soprima and sole legal and beneficial owner of a mixed-use property known as Massira Corner, located in Casablanca, Morocco (\"Property\"), to acquire an interest in an approved Organisme de Placement Collectif Immobilier (\"OPCI\") vehicle promulgated under recent amendments to Moroccan legislation, which is a vehicle in Morocco equivalent to a real estate investment trust (\"REIT\") (the \"Transaction\"). \n \nPrior to Grit acquiring an interest in the OPCI, the Seller will contribute the Property to the OPCI vehicle to be approved by the Autorité Marocaine du Marché des Capitaux (\"AMMC\"), the Moroccan Authority of Capital Markets, in exchange for equity. The Transaction will consist of Grit acquiring its share in the OPCI from MAH. \n \nThe Property consists of gross lettable area (\"GLA\") of approximately 16,500 sqm and is anchored by Hotel Onomo on an initial lease period of 9 years (renewable for a further 6 years) with 201 keys and occupying c.67% of the GLA, alongside notable high-street retail brands such as H&M, Charles and Keith, Starbucks, Terranova and Cosmos, who occupy the balance of ground floor retail space (c.33%). Massira Corner, which was completed in 2018, is located on a prime, corner site of the \...