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:
* 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
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:
We are targeting 12% US$ total return* including secure and growing distributions underpinned by high quality hard currency leases and contracted rental escalations.
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 Delta.
ASSET 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.