$120m in London IPO

African-focused property group Grit Real Estate Income Group plans to raise $120m (€102m) on the London Stock Exchange this month to help grow its assets.Grit, which currently trades on the Johannesburg Stock Exchange and on the Stock Exchange of Mauritius, said, it intends to issue up to 250m new ordinary shares at around $1.43 each and will apply for a listing in London.The company said it will use the capital raised in the initial public offering to buy assets in Ghana and Mozambique, in addition to other existing and new territories, as well as reduce the group’s overall level of gearing.Grit is currently present in Botswana, Kenya, Mauritius, Morocco, Mozambique, Ghana and Zambia. Other markets targeted or under consideration include Senegal and Seychelles.Bronwyn Corbett, the chief executive officer, said: “Our planned listing on the London Stock Exchange will create a compelling opportunity for the UK and other equity investors to gain exposure to the African real estate sector, which offers some of the best returns in the global property market.“We have a proven track record of generating income from our selective and diversified range of assets, built through our close and detailed understanding of the region’s property investment environment. The listing will support our aim to grow our portfolio further and become the leading real estate owner on the African continent outside South Africa.”Formed in 2012, Grit currently has 20 properties. The company’s assets include retail, office, industrial and hospitality properties.