Grit mitigates operational and other risk associated with African real estate through the following:
Currency Risk
Prioritisation of assets with USD or USD/Euro denominated leases
Tenancy Risk
Prioritisation of long-term leases with blue chip multinational tenants
(i.e. strength of the counter-party)
Repatriation Risk
Maintaining robust relations with the Central Bank, comprehensive monitoring; hedging policies
Country Risk
Pre-determined selection of target jurisdictions which satisfy key investment criteria1
Operational Risk
Selection of reputable experience in-country partners and property managers
Overexposure Risk
Defined diversification strategy in place2
Political Risk
Political Risk Insurance cover taken out where necessary
Notes:
1 – i.e. stable governance/political maturity, strong USD/FDI inflows, USD-based economies, high growth rates, acceptable sovereign ratings and outlook by ratings agencies, solid economic fundamentals, clear tax regime
2 – i.e. target not more than 25% of the GAV Group in any single investment; target not more than 25% of the GAV of the Group in any single country
