Grit Real Estate Income Group Limited has entered into a five year USD denominated lease agreement with Gr1t House Limited, a special purpose vehicle (SPV) established by Gateway Real Estate Africa Ltd (GREA) for the development of a 10,028 sqm or m2 Grade A commercial office complex in Fond du Sac, Mauritius (The Precinct).
Grit has contracted to occupy 2,020 sqm or m2 of gross lettable area in The Precinct, targeted for completion and occupation in the fourth quarter of 2022.
It said the property has an “independently verified” market related base lease rate of USD 19.08 per sqm/m2 per month, increasing at a fixed rate of 2.5% per annum. The property is inclusive of 11 basement parking bays, 54 open parking bays and 52 sqm/m2 of storage space.
An additional USD 1,081,215 fit out allowance has been agreed, “which when amortised over the lease period, adds an effective further USD 8.92 per sqm/m2 per month to the lease rate.”
GREA (an associated company in which Grit holds a 19.98% interest) is a private real estate development company and is regarded as a related party of Grit by virtue of common shareholding by the Public Investment Corporation of South Africa which holds a 48.5% interest in GREA and a 25.5% interest in Grit.
The transaction falls within Listing Rule 11.1.10 R of the UK’s Financial Conduct Authority.
Grit said it followed its related party transactions policy and complied with UK listing rules applicable to premium segment listed companies.
