Grit Real Estate expands further in Morocco

Grit Real Estate, the only panAfrican landlord listed on the JSE, is increasing its investment in Morocco by buying a stake in a property business that will house all its current and future investments in the North African country.

The business will hold Grit’s largest asset, the shopping mall Anfaplace. Grit did not disclose the purchase price.

Grit, which pays dividends in dollars and serves as a currency hedge, says it will manage and grow the asset base of the Moroccan company with the help of partners.

It may list the Moroccan business as a real estate investment trust (Reit) in the coming months on the JSE.

GEOGRAPHICAL DISTANCE

CEO Bronwyn Corbett said it made sense to separate its Moroccan assets from its others in Africa because of the geographical distances between the markets and differences between the property industries in each country.

“I am excited by the opportunities for Grit to significantly and profitably grow the new Reit vehicle’s asset base in Morocco with the inclusion of further potential acquisitions,” she said.

I AM EXCITED BY THE OPPORTUNITIES FOR GRIT TO SIGNIFICANTLY AND PROFITABLY GROW THE NEW REIT VEHICLE’S ASSET BASE

“Furthermore, with the support of additional potential equity investors taking up shares in the new vehicle alongside Grit, the group expects to deliver meaningful returns to shareholders and co-investors in the Organisme de Placement Collectif Immobilier (OPCI)/Reit vehicle through both income and capital appreciation from potential capitalisation rate compression and identified asset management opportunities across the potential assets to be acquired.”

The business is an approved OPCI vehicle, which are similar to Reits.

Grit reached an agreement with Société Soprima and Residence Massirat Al Houda, a subsidiary of Soprima, to acquire an interest in the Moroccan business, which operates like a Reit.

Reits pay a minimum of 75% of the distributable income as dividends every six months.

The transaction will consist of Grit acquiring its share of the OPCI from Massirat Al Houda, which is the owner of the mixed-use property Massira Corner in Casablanca, Morocco.

Grit will release interim financial statements on Thursday.

Grit already owns assets in Botswana, Ghana, Kenya, Mauritius, Mozambique and Zambia and has a market capitalisation of R5bn.