Grit Real Estate Income Group has amended the price at which it will buy the remaining 50 percent stake in Buffalo Mall.
The Mauritius-based real estate investment company will buy the remaining stake at the Naivasha mall for Ksh 308.5 million.
According to Business Daily, the company had initially proposed Ksh 275 million to take full ownership of the property.
“Grit intends acquiring, subject to necessary approvals being obtained, an additional 50 percent interest in Buffalo Mall Naivasha Limited, that will result in Grit’s interest increasing to 100 percent for a value of Ksh 308.5 million
“Once Grit takes full control and ownership of the retail complex, it will be free to deploy the full extent of its asset management and leasing capabilities with a view to repositioning the mall and the adjacent owned 37,280 square metres vacant land that has been earmarked for value-enhancing initiatives,” Grit said in an announcement.
Grit acquired its first 50 percent stake at Bufallo Mall in 2016 for Ksh 618.7 million.
However, this was a decline from the stake’s acquisition price of Ksh 827.8 million in 2016.
The decline was attributed to tough operating conditions for retail space owners in the country, occasioned by increased competition from similar facilities.
Curtailed demand for physical retail space on the back of the COVID-19 pandemic, which reduced consumer spending power was also pointed out as the cause of the decline.
Other assets held by Grit in Kenya include; Imperial Warehouse, Orbit Africa Warehouse, Rosslyn Grove and Eneo at Tatu City.
Grit Real Estate Income Group
Grit Real Estate Income Group Limited is a real estate investment trust (REIT) that invests in income-producing real estate assets in Africa.
The company was founded in 2012 and is headquartered in Mauritius.
Grit has a primary listing on the London Stock Exchange and a secondary listing on the Stock Exchange of Mauritius.
The company’s portfolio consists of a diversified mix of real estate assets, including shopping centers, malls, warehouses, resorts, and residential properties.
The company’s tenants include a mix of blue-chip, international companies and local businesses.
The company’s strategy is to generate superior risk-adjusted returns for its investors by investing in high-quality real estate assets in Africa.
As of March 31, 2023, Grit had a portfolio of 22 properties with a total value of $1.2 billion. The company’s net asset value per share was $1.35.