Grit Real Estate Income Group Limited (LSE:GR1T) agreed to acquire unknown stake in Gateway Real Estate Africa Limited and Africa Property Development Managers Limited from Public Investment Corporation Limited, Gateway Partners Limited, Bronwyn Knight and Greg Pearso for $80.6 million on November 22, 2021. Grit Real Estate Income will acquire additional 28.54% stake in GREA from Gateway Partners and 0.1% stake from Bronwyn Knight and Greg Pearso. Grit Real Estate Income Group will also acquire 31.58% Stake in APDM from Gateway Partners, 21.05% stake from Bronwyn Knight and Greg Pearso and 26.32% stake from GREA Executive Share Trust for $29.8 million.

After the completion of the transaction Grit will own a combined direct and indirect majority interest in GREA of 51.66% and a direct majority interest in APDM of 78.95%. In a related transaction, Grit Real Estate Income Group announced a Proposed Open Offer and Placing for up to 414,647,283 New Ordinary Shares at $0.52 per New Ordinary Share. The transaction will be financed from the Proposed Open Offer and Placing.

For the year ended on June 30, 2021, GREA reported net assets of $193 million. The transaction is subject to shareholder approval of Grit Real Estate Income. As of December 14, 2021, the transaction has been approved by Grit shareholders.

The transaction is expected to materially accelerate Grit's ability to access development returns from risk mitigated development projects from GREA's attractive pipeline of development opportunities and give Grit the additional management resources and control required to lead the further development of GREA, via APDM. Grit has today set out with the vendors of GREA and APDM certain amendments to the existing sale and purchase agreements in relation to the Proposed Acquisition including an agreed extension of the long stop date to April 8, 2022. As on July 29, 2022, the Grit Real announces an extension of the long stop date of July 31, 2022 to August 31, 2022.

As on August 31, 2022, the Grit Real completed the phase 2 of the transaction.