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Grit Real Estate Income (GR1T) an 8% African-owned commercial property fund, is listed in London after raising $ 132 million (£ 113 million) from investors.
The company, already listed on the Johannesburg and Mauritius Stock Exchanges, failed to attract money in its subscription offer but placed 92.37 million shares at 1 , 43 USD with institutional investors.
In doing so, he just crossed the minimum target of $ 120 million. had sought. The money will be used to repay bank credit facilities and to invest in a portfolio of new properties.
The four-year portfolio invests in commercial real estate outside of South Africa, holding 22 properties in seven countries, focusing on top-notch multinationals. This accounts for two-thirds of its tenants with most of its rental income paid in dollars and euros on leases increasing by 3-5% per year.
Executive Director Bronwyn Corbett said, "We are delighted to make our debut on the London Stock Exchange and we are proud to be the first pan-African real estate group listed in London. Grit has taken another key step in its development and we look forward to continuing to work with our new UK-based investors in the coming years, as we seek to take advantage of real estate investment opportunities in the UK. preselected African countries. & # 39;
Grit targets a 12% annual dollar return from which it has paid eight dividends since 2014. For the six months ended June 30, it seeks to pay a dividend of US $ 5.9 per share, which equals annualized yield of 8.25%.
Trading in the new shares will begin at 8am tomorrow. The symbol GR1T should not be confused with Global Resources (GRIT), a small mining fund listed in the UK
Although not strictly an IPO, the Grit's investment compares quite well with the eighth offer (IPO) that took place this year, raising more than £ 1 billion. The most important was at the beginning of this month when Tritax Eurobox (EBOX) real estate investment trust raised £ 300 million. The first successful launches were Baillie Gifford US Growth (USA), which raised £ 173 million, and Life Settlement Assets (LSAA), which invests in fonts of Second-hand life insurance sold by US citizens in poor health seeking to raise funds. He raised £ 134 million.
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