Grit Real Estate Income Group Limited (JSE:GTR) agreed to acquire 50% stake in Infinity Tower Limited from Goldkey Properties Ghana Ltd. for approximately $11.2 million on October 24, 2019. The estimated Infinity purchase consideration is subject to adjustment, pending final confirmation of the recoverable value of working capital balances, provided that such adjustment shall not increase the estimated purchase consideration by more than 10%. Accordingly, the maximum purchase consideration payable by the Grit Real Estate Income Group Limited for Infinity Tower Property is $11.17 million. The purchase consideration payable by Grit for Infinity will be paid by Grit by way of an interbank transfer on the completion date. In related transaction, Grit Real Estate Income Group Limited agreed to acquire 50% stake in CH Building from Goldkey Properties on October 24, 2019. The value of the net assets of Infinity Tower as at December 31, 2018, was a negative amount of $0.16 million. The audited loss after tax attributable to Infinity Tower for the year ended December 31, 2018, was $0.16 million. The transaction is conditional on Grit conducting a legal, financial, taxation and commercial due diligence investigation on Infinity Tower and providing a letter confirming that it is satisfied with the outcome of the due diligence investigation, the completion of a formal valuation by an independent third party RICS-approved valuer acceptable to the CH Group, Goldkey, Cantonments City, Infinity Tower and Grit, Grit successfully managing to raise the requisite funds required to implement the Infinity Tower Acquisition on terms and conditions acceptable to Grit, external bank debt being raised to refinance Infinity Tower’s existing external debt, approval of the final form of the documents in connection with the Infinity Tower Acquisition by the board of directors and investment committee of Grit, approval of the final form of the documents in connection with the Infinity Tower Acquisition by the board of directors and investment committee of each of CH Group, Goldkey, Cantonments City and Infinity Tower, the resignation of directors of Infinity Tower with effect from the Infinity Tower Acquisition Completion Date, any shareholder resolutions and board resolutions required for the allotment and issue of the Infinity Acquisition Shares being duly passed by Cantonments City in its capacity as the sole shareholder of Infinity Tower, or the board of directors of Infinity Tower. The completion date of the Infinity Tower Acquisition will be the date on which all the Infinity Tower Acquisition conditions precedent have been fulfilled (or waived), which is expected to occur no later than December 31, 2019. The transaction is accretive. William Marle, Scott Mathieson, Matthew Radley, Mark Whitfeld and Monica Tepes of finnCap Ltd acted as financial advisors to Grit Real Estate Income Group Limited. PSG Capital (Pty) Limited acted as financial advisor to Grit Real Estate Income Group Limited.