Grit Real Estate Income to reduce its interest in Acacia Estate – QuotedData

Grit Real Estate Income (GR1T) has entered into a binding agreement to reduce its interest in Acacia Estate, a 76 residential units condominium property located in Maputo, Mozambique that is let to the US government. In what is effectively a partial sale to a related party (see below for the nuts and bolts of the transaction), GR1T will reduce its interest from an 80% direct interest to a combined direct and indirect interest of 62.65%. GR1T says that the transaction has an implied property valuation of US$67,540,000, which it says is equivalent to its carrying value at 30 June 2020. The effective date of the transaction is 1 November 2020 and the sale will be settled in cash.

Acacia Estate is still a core asset

GR1T says that Acacia Estate is still a core asset, but it believes that the property has reached an attractive valuation yield of 7.93% at 30 June 2020, representing a 9.4% increase on the August 2018 acquisition value. However, GR1T will continue to asset manage the structure and shall continue providing full property management activities. Upon completion of the deal, Grit Services Limited (GSL) will realise US$11,812,908 in cash from the part disposal of its share in the Property. This will be used to replenish its current assets minus Source…

Author: Global Real Estate