GRIT Sells 3 Assets, Including Artemis Hospital

GRIT Real Estate Income Group Limited (GRIT), a leading real estate investment company operating in Africa, is selling off several properties, including Artemis Hospital in Curepipe, to streamline its operations and reduce costs. The decision to divest these assets aligned with GRIT’s strategy to recycle its investments and concentrate on developing a new healthcare facility in Coromandel.

The Artemis Curepipe Hospital, which commenced operations in May of the previous year following a significant investment of Rs 498 million, is the result of a collaboration between Falcon Healthcare Group—which was previously known as Polyclinique de l’Ouest—and India’s Artemis Health Institute.

This project was developed by GREA, the investment arm of GRIT focused on real estate projects.

Peter Todd, the chairman of GRIT, addressed the company’s asset-sale strategy in a financial report submitted to the Stock Exchange of Mauritius on October 31.

He emphasized that selling these assets is essential for the company to achieve a loan-to-value ratio below 45%.

This ratio is a crucial metric that banks use to assess the viability of lending; it helps them determine whether the value of the collateral offered by a borrower is sufficient to secure the loan in case of default.

“This asset recycling initiative is not merely a dramatic shift in our business but a practical step to ensure financial stability,” Todd stated.

By selling Artemis Clinic, along with other properties like the Tamassa Resort and additional hospitality assets, GRIT is aiming to generate fresh capital for the new hospital project in Coromandel, which will specialize in advanced cancer treatment.

GRIT’s goal through this asset recycling program is to achieve $160 million (approximately Rs 7.6 billion) in asset sales by the end of December.

Additionally, the company is projecting a short-term divestment of $76.4 million (around Rs 3.6 billion) from non-strategic assets.

As part of its cost-reduction policy, GRIT has implemented strict controls on operational expenses, targeting a sustained 1% of revenues generated from its assets.

This cost-containment program, initiated in the fiscal year ending June 30, has already led to a 14% annual reduction in administrative expenses.

The proportion of administrative expenses relative to total revenues decreased significantly, from 2.42% as of June 30, 2023, to 1.85% for the corresponding period in 2024.

In contrast to the traditional reporting practices of other companies listed on the Mauritius Stock Exchange, GRIT’s latest annual financial report stands out.

Instead of a simple submission of a signed document by the company secretary, it consisted of a comprehensive 59-page document that included insights from Todd, Chief Executive Officer Bronwyn Knight, and Chief Financial Officer Gareth Schnehage.

This report did not just present accounting results from the year but also addresses potential inquiries stakeholders may have, providing an in-depth view of GRIT’s operations as a key player in the economies of African countries.

Source: l’Express