Gateway Real Estate Africa (“Gateway Delta“), in which Grit owns a 20% equity interest and which specialises in turnkey construction of real estate assets from inception to final handover, is one of the Group’s preferred development partners. Through its team of highly experienced professionals, and in conjunction with long standing in-country associates and partners, Gateway Real Estate Africa has achieved significant success in the management and delivery of complex projects throughout Africa. Gateway Real Estate Africa provides Grit with access to a high quality, well understood acquisition pipeline (subject to agreeable deal terms). Find out more about Gateway Real Estate Africa here: https://greafrica.group/
Evolution of the Grit Group Strategy
A leading Pan-African (ex South Africa) real estate group focused on identifying, unlocking and delivering superior returns by focusing on three primary areas to achieve this.
The strategy of Grit has evolved around 3 pillars:
PROPERTY INVESTMENT
We are targeting 12% US$ total return* including secure and growing distributions underpinned by high quality hard currency leases and contracted rental escalations.
PROPERTY DEVELOPMENT
We are aiming at reaching to 20% of GAV** exposed to a combination of risk mitigated development pre-funding strategies and equity exposure in Gateway Real Estate Africa.
Read more about Gateway Real Estate AfricaASSET MANAGEMENT AND CO-INVESTMENT
We are looking at opportunities to co invest into direct real estate portfolios. Asset Management fees will be charged on full asset value.
* This is a target only and not a profit forecast and there can be no assurance that it will be met. Any forward-looking statements and the assumptions underlying such statements are the responsibility of the Board of directors and have not been reviewed or reported on by the Company’s external auditors.
** Measured at the time of investment.
The Group considers key criteria such as: ability to conduct business in hard currency, repatriation of funds, political risk, land tenure and debt raising ability in the first instance before proceeding further with any investment opportunity.
Investment opportunities are then assessed against Investment Guidelines as indicated below:
Notes:
* applicable also where the ability exists to hedge local currency at a commercially acceptable cost
** the company further mitigates exposure to local trading currencies in retail assets through investing in urban centres and high growth nodes with high trading densities and where USD income is prevalent e.g. expat communities
*** the targeted total return for the group is achieved through the combination of dividend yield of min 8.0% and the balance of NAV growth to the 12.0% target