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Grit Real Estate Income Group

Grit Real Estate plans fundraising to support investment pipeline

The pan-African real estate investor said the issue would support a “significant and growing pipeline” of investment opportunities across the continent

Grit Real Estate Income Group - Grit Real Estate plans share issue to support investment pipeline

Grit Real Estate Income Group Limited (LON:GR1T) is seeking shareholder permission to issue up to 280mln new shares to support its growth aspirations.

The pan-African real estate investor said the shares, to be issued as part of a placing, an offer for subscription and intermediaries offer, would be used to support what it said was a “significant and growing pipeline” of investment opportunities across the continent, particularly in the industrial, corporate accommodation and hospitality sectors.

READ: Grit Real Estate enters Senegalese property market with €11.6mln luxury hotel acquisition

The issue price for the shares would not be less than the group’s net asset value (NAV) per share at the time of issue, and there would be no dilutive effect on the NAV, the company said.

Extra cash will allow Grit to “capitalise further” on its investment pipeline, while also enhancing the quality of its portfolio and spread its operating cost over a larger capital base.

The company said it would seek approval for the move from shareholders at a general meeting to be held on 11 October.

In early trading on Wednesday, Grit’s shares were steady at 1.4p.

Quick facts: Grit Real Estate Income Group

Price: $1.37

Market: LSE
Market Cap: $404.66 m
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Performance demonstrates 'robustness' of Grit Real Estate Income's business...

Capital Network analyst Ed Stacey talks through Grit Real Estate Income Group Ltd's (LON:GRIT) trading update for the year to June 2019. He says the company's on track to deliver its targeted 12% total shareholder return for the year and an increased dividend.

on 27/6/19

2 min read