African real estate company, Grit, to float on London market.

The most intriguing story of the day (July 17th 2018) in London is the announcement by a small and  unknown (in the U.K.) property company called Grit. The plan is to sell up to 250m shares at an indicative price of $1.43 per share, which matches the net asset value per share on the Johannesburg and Mauritian stock exchanges, where Grit listed in 2012.  Sensible. That adds up to $357m. Grit says net proceeds of $120m will be used to invest in Ghana and Mozambique. The rest presumably goes to recapitalise the business and allow shareholders to cash in their holdings. But I’m no expert. There are promises of a 12% return. Tempting. But not if you are a widow or orphan.

Author: Peter Bill

Author and commentator on UK housing and commercial real estate. Co-author of Broken Homes: Britain's Housing Crisis: Faults, Factiods and Fixes (2020) & Planet Property (2015) detailing the workings of the real estate sector. Former editor of Building magazine and Estates Gazette and columnist on the London Evening Standard. Columnist for Property Week.

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