Grit Maputo office portfolio steadily continues to outperform the Maputo office market performance.

Although the average rental growth reflects negatively (5.9%) from a 1.4% average rental growth as at December 2019, this is due to rental reversions on lease renewals and strategic re-tenanting on the anchor tenants in Commodity House Phase 1 and Hollard/ KPMG Buildings. The 2 buildings make up 54% of GRIT’s total GLA in the Maputo area. We should see a steady growth over the next few years as the annual rental escalations are applied.

Grit Maputo Office PortfolioMaputo Office Sector
Average Rental Growth Last 3 Years (5.9)%1.4%
Average Vacancies Last 3 Years1.2%33.5%
Average Rental Last 3 YearsUS$32.2 M2US$26.5 M2

Portfolio statistics on a like for like bases (excluding Commodity House Phase 2). Market statistics have been obtained from the independent external valuation reports

Leasing Update (Key Tenants)
Exxon Mobil
  • New 5-year lease in Commodity House Phase 2 in Maputo, Mozambique
  • 1873m2office space lease while residual space in building (995m2 ) currently under active asset management activity
  • Exxon Mobil granted first option on any further Grit controlled office space in Commodity House Phase 1
VALE
  • Lease concluded with Vale whereby new 5-year term agreed for existing 102 corporate accommodation units and an additional newly developed 40 two-bedroom and 20 three-bedroom units has been concluded effective 1 June 2019
TOTAL (previously) Anadarko Petroleum Corporation  
  • New 10-year office lease resulting in an increase in GLA with Anadarko to 1910m2 in Commodity House Phase 1 building in Maputo, Mozambique
  • Lease secured in pursuing an active asset management strategy and an exit of an existing local tenant
VIP Spar
  • VIP Spar (1780m2) introduced as anchor tenant in Zimpeto Square shopping mall.
  • New five-year lease from 1 April 2019
  • Concessions on rental rate in favour of higher quality tenant
New Macau Casino
  • New Macau Casino (947m2) introduced to Mall de Tete on 1 April 2019 on a new five-year lease
  • In line with the Group’s strategy of increasing entertainment and service offerings in similar centres
Mozambique Debt
Ability to Service Existing Debt
  • Mozambique Debt: Standard Bank South Africa and ABSA Bank (US$140m)
    • The quality of the portfolio underpinned by the strength of the underlying leases further confirms the portfolio to service the newly acquired debt of USD 140 million.
Ability to Secure New Debt
  • Mozambique Portfolio:
    • Standard Bank of South Africa and ABSA Bank (US$140m)
      • The portfolio was able to secure new debt of USD 140 million through a syndication, between Africa’s leading banks at a significantly lower cost of debt at tenure of 4 years.
      • All debt in Mozambique has been refinanced under the portfolio lend.

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