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Mara Delta announces rebrand

Anna Lyudvig
Aug. 4, 2017, midnight
384

Word count: 578

Mara Delta Property Holdings has changed its name to Grit Real Estate Income Group Limited to better reflect the current and future growth ambitions of the organization.

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Mara Delta Property Holdings has changed its name to Grit Real Estate Income Group Limited to better reflect the current and future growth ambitions of the organization.

Morne Reinders, Corporate Affairs & Investor relations manager, told Africa Global Funds that the strategy of the company remains very much the same – “there has been no change in mandate from investors”.

He said that there are two main reasons for the rebrand.

“In line with our strategy to expand our geographical footprint on the African continent, we continuously seek strategic partnerships with businesses that have existing structured and detailed knowledge of operating in new target jurisdictions.”

In August 2015, Mara Delta and The Pivotal Fund (a JSE listed development fund with some Africa assets), representing a consortium of investors commenced discussions regarding the injection of a significant amount of capital into Mara Delta and to include Pivotal’s portfolio of rest of Africa assets into Mara Delta.

In terms of the framework agreement entered into between Mara Delta and the Pivotal Consortium, Mara Delta changed its name to Mara Delta Property Holdings Limited and restructured its board to include members of the Pivotal Consortium.

Subsequently, Abland Africa Limited, Carlisle Property Holdings Limited and Mara Group (through Ameiya Holdings Limited) were appointed as promoters to source investment and development opportunities for Mara Delta across the continent. These entities did not invest in Mara Delta.

According to Reinders, on August 30, 2016, Pivotal and Redefine Properties Limited (one of the largest listed property companies in South Africa) jointly announced Redefine’s firm intention to acquire all of the issued share capital of Pivotal.

This transaction was implemented in January 2017 resulting in the delisting of Pivotal from the JSE.

“Considering the delisting of Pivotal and the subsequent dissolvement of the Pivotal Consortium, the existing rationale for the Mara Delta name, as well as the individuals involved which lead to the Mara Group’s association with Mara Delta, was no longer effective. In addition, a mutual decision was reached to discontinue the promotors’ agreement with Mara Group’s Ameiya Holdings Limited,” said Reinders.

Since Mara Delta was no longer associated with the Mara Group, the board proposed to shareholders the name change.

“At approximately the same time, we started with a very ambitious capital raise that concluded shortly before the change of name. We raised $121m through a well-supported rights offer, the proceeds of which have been allocated to acquire pipeline assets,” he said.

“This effectively doubled the size of the portfolio and company, changing its growth prospects significantly,” he said.

“This will boost our asset portfolio to over $600m in value. We believe that Grit must deliver a balance of international gravitas to investors while ensuring African credibility and authenticity,” added CEO Bronwyn Corbett. 

Headquartered in Grand Baie, Mauritius, Grit has steadily increased its investments in Mauritius. 

The acquisition of the Barclays Building in Ebene was the Company’s first foray into the country. 

This was followed by acquiring a 44.4% stake in three four-star Beachcomber hotels (Le Victoria, Le Canonnier and Le Mauricia) and full ownership of one four-star Lux Resorts hotel (Tamassa), bringing the company’s exposure to Mauritius, in terms of asset value, to 21%. 

“Going forward, there will be a strong focus on growing the net asset value of the business, bedding down our pipeline acquisitions and increasing liquidity in the Company. We now have critical mass and anticipate raising capital less regularly in the market,” concluded Corbett. 

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