The he M Mauriti tius s Inves estmen ent Cas ase A GRIT REAL ESTATE CASE STUDY – BRONWYN CORBETT (CEO)
Grit is a MULTI-LISTED REAL ESTATE INCOME GROUP operating in carefully selected AFRICAN COUNTRIES We optimise our structural investments underpinned by SOLID PROPERTY FUNDAMENTALS to achieve SUPERIOR US DOLLAR RETURNS
Main Market Listings PRIMARY LISTINGS SECONDARY LISTING LSE - GR1T:LN JSE - GTR:SJ SEM – DEL.N0000 Successful capital raise of US$ 132.2 million in July 2018 • First Mauritian company to list on Main Market of the LSE • Only LSE listed Africa real estate focused distribution group • Grit’s shares are fully-fungible across all three exchanges • Intention to convert to Premium Listing on Main Market of the LSE • Ι 3
Investment Jurisdictions AFRICA THE LAST FRONTIER 22 assets 7 countries 5 asset classes 4.1% GDP growth in 2018* Ι 4 * Projected – African Economic Outlook 2018, African Development Bank
Grit in Mauritius Credentials SEM10 constituent company SE SEM-10 10 Capitalisa sation Rank nk Const nstituents (Rs) (R 64,447,254,72 1 MCB Group Limited 0 4 th largest company in Mauritius* 33,773,123,58 2 IBL Ltd 6 20,107,602,76 3 SBM Holdings Ltd 2 US$600m property portfolio 14,778, 778,33 338, 8,67 67 4 Grit 6 14,762,767,09 5 ENL Land Ltd 6 New Mauritius 12,158,278,46 First Mauritian-domiciled 6 Hotels Ltd 2 11,795,510,43 7 CIEL Limited 8 company to list on the LSE Lux Island Resorts 10,146,579,78 8 Ltd 2 9 Sun Limited 9,445,163,245 2 to 22 assets in 4 years 10 Rogers & Co. Ltd 8,569,540,200 * As at 21 August 2018, based on market capitalisation Ι 5
Geographical Location central location regional hub Ι 6
Why Mauritius conducive business environment secure investment climate transparent regulation KEY INDUSTRIES agro-industry | aqua-culture and ocean economy | education financial services | healthcare | hospitality | property development and smart cities | ICT-BPO | life sciences | logistics | manufacturing | media and creative industries Ι 7
Why Mauritius st in A Ability to list in USD on the Mauritius Stock Exchange 1 st Afri frica Pool of liquidity and support from institutional investors in World Bank Doing Business Survey 2017 • Mauritius 2018 Index of Economic Freedom • Mauritius as a financial hub in the region and gateway to Africa (Heritage Foundation) Business-friendly policies and investment-friendly regime Economic Freedom of World 2017 (Fraser • Institute) Established rule of law and Political Stability World Economic Forum Global • Full range of banking services from international providers Competitiveness Report 2017 – 2018 Competent workforce (18 local staff out of 27 based in Mauritius) Mo Ibrahim Index of African Governance • 2017 Mauritius benefits from an array of Double Taxation Agreements (DTAs) and generally favourable tax regime Social Progress Report 2017 • Grit currently has stakes in 4 hotels and one commercial building Global Information Technology Report • in Mauritius 2016 Ι 8 Source: Economic Development Board, Mauritius (2018)
Mauritius Credentials NO NO INDEX GLOBAL AL R RAN ANK AFRICA R AF A RAN ANK 1 World Bank Doing Business 2018 25 out of 190 countries 1st 2 Global Competitiveness Index 2017-2018 45 out of 137 countries 1st 3 Corruption Perceptions Index 2016 - (Transparency International) 50 out of 176 countries 3rd 4 International Property Rights Index 2016 34 out of 128 countries 3rd 5 Mo Ibrahim Index of African Governance 2017 - 1st 6 Press Freedom Index 2017 - (Reporters without Borders) 56 out of 180 countries 5th 7 The A.T. Kearney Global Services Location Index 2016 30 out of 50 countries 3rd 8 2018 Index of Economic Freedom - (Heritage Foundation) 21 out of 180 countries 1st 9 Economic Freedom of the World 2017 - (Fraser Institute) 7 out of 159 countries 1st 10 Human Development Index 2016 64 out of 188 countries 2nd 11 Democracy Index 2017 – The Economist Intelligence Unit – Full Democracy 16 out of 167 countries 1st 12 Knowledge Economy Index 2012 - World Bank 62 out of 145 countries 1st 13 Global Enabling Trade Report 2016 - World Economic Forum 39 out of 136 countries 1st 14 Environmental Performance Index 2016 77 out of 180 countries 1st 15 Mercer’s 2016 Quality of Living Survey 83 out of 230 countries 1st 16 E-Government Development Index 2016 58 out of 193 countries 1st 17 Global Information Technology Report 2016 49 out of 139 countries 1st 18 ITU - Measuring the Information Society Report 2016 73 out of 175 countries 1st 19 Forbes Survey of Best Countries for Business 2017 39 out of 139 countries 1st 20 The Travel and Tourism Competitiveness 2017 55 out of 136 countries 2nd 21 Social Progress Index 2016 40 out of 133 countries 1st Ι 9 Source: Economic Development Board, Mauritius (2018)
Beachcomber Portfolio Transaction Acquisition of a 44.4% interest in an entity owning three hotel assets in Mauritius, namely: Victoria, Canonnier and Mauricia Total investment value of EUR50 million Euro denominated earnings through a 15 year triple net lease from a SEM Listed tenant, escalating at Euro- harmonized CPI (minimum 1%) Sale and leaseback deal basis Geared return in excess of 10% in Euro Cost of debt : EUR fixed rate 4% Ι 10
LUX* Tamassa Resort Transaction Counterparty: LUX* 10 year, triple-net EUR lease Acquisition yield: 8% Return on Grit equity of 15% Equity EUR 17.8M (including preference share) and debt EUR 22.3M Cost of debt: EUR fixed rate 3.75% US$12.8M preference shares 6.25% yield with strategic co-investor Variable rent of 20% EBITDA (achieved) Ι 11
Barclays House Transaction Anchor: Barclays Bank 7 700m 2 A-Grade Commercial Office Building Acquisition yield: 7.3% 10 year lease to blue chip tenant Purchase consideration: US$13.5M Located in Cybercity, Ebène Sought-after office node 15km south of Port Louis Cost of Debt : margin of 4.25% Ι 12
Guts – Resilience – Innovation – Tenacity … Grit Constant Performance Portfolio Strength Build Talented people Relationships Ι 13
Creating an impact in our community All Life Matters Animal Sanctuary Mauritius Last Male Standing Kenya The GRIT CSR program was launched with great anticipation and success in May of 2018. In challenging ourselves to become true GRIT Champions, we identified various projects to engage with and provide much needed support. Our efforts are tested against the pillars of our corporate philosophy, and challenges us to actively engage in bringing about positive change in areas where we can contribute on a significant scale. Ι 14
Create an impact in our community Grit Women Property Network Ι 15
Thank You Grit Real Estate Income Group Reg. No. C128881 3rd floor, La Croisette Shopping Centre, Grand Baie 30517, Mauritius Level 5, Alexander House, 35 Cybercity Ebene 72201, Mauritius T: +230 269 7090 E: communications@grit.group Ι 16
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