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Grit Real Estate Income Group Ltd - pan-African property investment and management - Completes the acquisition of the Orbit Africa warehouse and manufacturing facility in Nairobi, Kenya, in a sale-and-leaseback deal.
The acquisition follows the raising of a $25 million debt facility from International Finance Corp on July 2 and the issue of a perpetual note to Ethos Mezzanine Partners GP Pty Ltd and BluePeak Private Capital GP on October 13 that raised $31.5 million.
Plans to complete the redevelopment and expansion of the facility, which is expected to be finished in the fourth quarter of 2023. Intends to let it on a new 20-year triple-net lease to Orbit Products Africa Ltd then.
Total investment in the property is expected to be $53.6 million. This includes the initial sale and leaseback on a new 25-year US dollar denominated triple net lease to Orbit Products Africa at a net acquisition yield of 9.60%, as well as the redevelopment and expansion of the facility at a contractual development yield of 16%.
‘We are pleased to complete this transaction, which will further increase Grit's exposure to Kenya and the broader light industrial sector, which is expected to be accretive from inception to both Grit's NAV and earnings, delivering enhanced sustainable value to our shareholders whilst creating long-lasting positive social, economic and environmental benefits for local communities,’ Chief Executive Bronwyn Knight comments.
Current stock price: 33.65 pence, down 5.2 % on Wednesday
12-month change: up 46%
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