Business
Completion of acquisition of Orbit Africa facility
Completion of acquisition of Orbit Africa facility.
About this update from Grit Real Estate Income Group Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 1097E\n Grit Real Estate Income Group\n 09 March 2022\n \n \n \n \n \n \n \n \n GRIT REAL ESTATE INCOME GROUP LIMITED\n \n \n (Registered in Guernsey)\n \n \n (Registration number: 68739)\n \n \n LSE share code: GR1T\n \n \n SEM share code: DEL.N0000\n \n \n ISIN: GG00BMDHST63 \n \n \n LEI: 21380084LCGHJRS8CN05\n \n \n (\"Grit\" or the \"Company\" \n and, together with its subsidiaries, the \"Group\"\n )\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n COMPLETION OF THE ACQUISITION OF THE ORBIT AFRICA WAREHOUSING AND MANUFACTURING FACILITY, NAIROBI, KENYA\n \n \n \n \n \n \n \n \n \n \n The board of Directors (the \"Board\") of Grit Real Estate Income Group Limited, a leading pan-\n African real estate company focused on investing in, developing 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 all the conditions precedent related 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 completed by the Company. \n \n \n \n \n \n The acquisition follows previous announcements by the Company on 2 July 2021 related to its raising of a US$ 25 million debt facility from the International Finance Corporation (\"IFC\"), the investment arm of the World Bank, and on 13 October 2021 related to the US$ 31.5 million perpetual note to Ethos Mezzanine Partners GP Proprietary Limited and BluePeak Private Capital GP. \n \n \n \n \n \n The Board looks forward to the successful completion of the redevelopment and expansion of the Orbit Africa warehousing and manufacturing facility, which is expected to be completed in the fourth quarter of 2023 when it will be let on a new 20-year triple net lease to Orbit Products Africa Limited. \n \n \n \n \n \n The total investment in the property is expected to be US$53.6 million (incl. VAT), comprising of the initial sale and leaseback on a 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 Com...