Grit Real Estate Income Group – Grit 2.0
Having concluded its acquisition of a leading property developer and asset manager, pan-African property company Grit Real Estate Income Group (Grit) is a radically different proposition. Grit 2.0 has a greater return target (of between 12% and 15%) thanks to the controlling stake it now owns in Gateway Real Estate Africa (GREA) and its pipeline of potentially NAV accretive, risk-mitigated development projects – most notably diplomatic residences across the continent that are let to the US government.
Ongoing asset recycling – away from the retail and hospitality sectors – has shored up its balance sheet, while creative means of raising additional capital aims to secure the substantial development pipeline and plot a way to ongoing, sustainable returns and growing, resilient income. A new line of revenue through the fee income earned from the property asset management business could add further robustness to its earnings and support its dividend.