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Grit Real Estate ups stake in Mukuba Mall in Zambia

The US$8.2mln deal will take the group's holding in Mukuba to 75%
Mukuba mall
Mukuba is located in Kitwe, Zambia’s second-largest city

Grit Real Estate Income Group Limited (LON:GR1T) has acquired an additional 25% stake in the Mukuba Mall in Zambia in a US$8.2mln deal.

The Africa-focused property investor said following the transaction, it would own 75% of the mall’s holding entity, Mukuba Mall Limited, having previously held a stake of 50%.

READ: Grit Real Estate expects more rental growth after interim jump

Mukuba is located in Kitwe, Zambia’s second-largest city and one of its most developed industrial and commercial areas.

It is one of three Zambian malls that Grit has a stake in, with its portfolio also including 50% holdings in the Kafubu and Cosmopolitan malls, valued at US$13mln and US$40.5mln respectively. The firm's previous 50% holding in Mukuba was valued at US$38.5mln.

Bronwyn Corbett, chief executive of Grit, said the increased holding was expected to deliver “further value” to investors, and that since taking its initial 50% stake, the firm had seen “positive valuation uplift, rental growth and low vacancy” at the property.

The investment also increased Grit’s exposure to convenience retail, which Corbett said had proven to be “the most resistant subsector” to downturns in the retail market.

Shares in Grit were steady at 1.4p in early-afternoon trading Tuesday.

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