LONDON - Grit Real Estate Income Group Limited (LSE:GR1T), a pan-African impact real estate company, has finalized a strategic partnership with Broll Property Group aimed at enhancing operational efficiency and reducing costs. The collaboration, which excludes Grit's retail assets in Zambia and Morocco, will see Broll take over property and facilities management for Grit's assets, valued at approximately $812 million.
The partnership is expected to yield cost savings of around $1 million annually, aligning with Grit's goal to lower administrative expenses to 1% of total income-producing assets in the medium term. This move is part of Grit's "Grit 2.0 strategy," which focuses on impact real estate development and strategic asset management.
Bronwyn Knight, CEO of Grit, stated that this agreement would allow the company to concentrate on its core expertise and support the development of its significant asset pipeline. Malcolm Horne, Group CEO of Broll, expressed enthusiasm for the partnership, highlighting the potential for operational excellence and cost efficiency.
The partnership is scheduled to become effective on February 1, 2025, following a handover phase and a comprehensive tenant outreach program to ensure a smooth transition. This strategic move is anticipated to leverage Broll's extensive experience and systems to improve vacancy filling and rental collections across Grit's portfolio.
Grit Real Estate Income Group is known for its diversified portfolio of assets across various African countries, focusing on delivering sustainable income and the potential for income and capital growth for shareholders. The company is listed on the London Stock Exchange (LON:LSEG) and has a secondary listing on the Stock Exchange of Mauritius.
The information is based on a press release statement, and the company's Board of Directors takes full responsibility for its accuracy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.