Grit Real Estate Income Group Ltd on Thursday said it has entered a strategic partnership with Broll Property Group Pty Ltd, as part of Grit’s ongoing efforts to optimise its operation.
The Pan-African property investment and management company based in Mauritius said South African real estate services provider Broll will assume responsibility for all of Grit’s assets, which are valued at around $812 million.
This will exclude Grit’s retail assets in Zambia and Morocco, where Heriot REIT Ltd and CBRE Ltd will continue as the respective property managers.
The partnership is targeted to result in cost savings of around $1 million per annum for Grit, and enable the firm to focus on its ‘core expertise’ in impact real estate development and asset management initiatives.
Grit will also leverage Broll’s database, footprint, systems and proficiency to speed up vacancy filling and support its portfolio rental collections.
Grit Founder & Chief Executive Officer Bronwyn Knight said: ‘This partnership unlocks meaningful economies of scale, and importantly, finds a way for Grit to fully focus on impact real estate development and asset management as part of its Grit 2.0 strategy.
‘After an extensive analysis, the board concluded that a simpler structure would support the successful development of our significant pipeline of assets under the guidance of our predominantly women development team, as well as the efficient asset management of the portfolio.’
Shares in Grit were flat at 10.21 pence each in London on Thursday afternoon.
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