Structured real estate investments can develop Africa
August 24, 2017
JSE-and Mauritius-listed company, GRIT Real Estate Income Group, will be attending the noteworthy platform for real estate investment in Africa this week at the Sandton Convention Centre to discuss current trends, share industry experiences, and hopefully emerge having made positive connections in the various African countries.
As a top tier Gold Sponsor to the Africa Property Investment Summit & Expo (API), GRIT will be connecting with the most influential local and international Africa property stakeholders, in the promise to seek meaningful and profitable investment into a range of real estate, infrastructure projects and developments across the continent.
The API Summit gathers the region’s most senior investors, developers, operators and professionals providing the right platform to do deals across the region.
It is in this precise vein that Grit is Gold. It pioneered the concept of providing investors direct access to real estate ownership in Africa’s high-growth markets (excluding South Africa)
Grit distributes its income to shareholders in US dollars, making it a currency hedge in addition to participating in superior distribution growth. The Company recently distributed its sixth consecutive distribution to shareholders and targets a dividend yield of over 7% in US dollars.
Bronwyn Corbett, Grit CEO, has two days of bespoke networking opportunities, focussing on Morocco, Nigeria, Ghana, Kenya, Rwanda, Tanzania, discussing the impact that structured real estate investments can have on development of the continent.
Given the strong correlation between the investment case of REITs on the one hand and the investment mandate of pension funds on the other, REIT legislation has been a significant catalyst in the growth of listed real estate investments in those markets.
Although Grit distributes its income in the same way as a REIT does, it is not a REIT and pays the relevant taxes in-country.
For South African investors, this means they are charged a lower foreign dividend tax on their earnings, as opposed to a higher income tax compared to distributions from South African listed REITs.
“We offer investors exposure to hard currency income at emerging market growth rates, making us a unique addition to any investment portfolio.
Our risk is mitigated by the quality of our tenants, including the likes of Vodacom, Barclays, Beachcomber and Lux Resorts as well as the long-term hard currency leases we have entered into.
Going forward, we are targeting growth in our current countries of operation as well as in new jurisdictions including Botswana, Rwanda and Ghana,” says Bronwyn Corbett, Grit Chief Executive Officer.