JSE-listed Grit Real Estate and Tradehold on Friday announced a $23-million Mozambique property transaction in which Grit would buy an A-grade corporate residential complex, known as Acacia Estate, in Maputo, from Tradehold.
Grit has signed an agreement with Tradehold Africa, TC Maputo, Cognis 1 and three individuals to buy the property for a total of $23.45-million, comprising $12.26-million for the effective shareholding and $11.18-million in existing shareholder loans.
The acquisition will be executed through acquiring shares directly in Cognis and indirectly through the purchase of shares in TC Maputo, an 85% shareholder of Cognis. Grit will acquire 15% of the shares in Cognis and 76.6% of the shares in TC Maputo, effectively owning 65.1% in Cognis.
Tradehold said that the disposal was in line with its stated intention to reduce exposure to the African continent, outside of South Africa and Namibia, and to enhance its focus on its key markets, being South Africa and the UK.
Grit said in a separate statement that Acacia Estate was a “premium asset” with international blue chip tenants, underpinned by dollar-based leases. The complex is anchored by tenants occupying 98% of the gross lettable area, including an embassy and a multinational oil company.
The effective date of the acquisition is June 1.
Meanwhile, Grit also announced that its wholly owned subsidiary, Grit Accra, had signed a sale of shares agreement with Mobus Properties for the acquisition of 47.5% of the issued shares of the company.
Mobus, a privately owned Ghanaian property investment company, owns an office complex in Accra called Capital Place, a three-building complex located on 1.88 acres of land.
The acquisition marks the partnering of Grit with Mobus Properties, which would work jointly with Grit West Africa, the asset management arm of Grit in Ghana, to provide asset management services.
The effective date of the acquisition is April 15.
The company meanwhile, reported on Friday that Peter Todd had been appointed chairperson of the board, effective April 12.