SACREIL’s Gross Asset Value Remains Constant at US$90.7 million Amidst Difficult Markets in Africa

What were the main economic conditions in the three countries in which SACREIL holds core real estate assets?
The World Bank is forecasting Ghana’s economy to slow further to 1.6 % in 2023; the IMF is projecting Tanzania’s economic growth at 6,1% and Nigeria at 3% growth for the year.

Company Overview

  • Sanlam Africa Core Real Estate Investments Limited (SACREIL) is incorporated in Mauritius and has a Global Business License issued by the Financial Services Commission
  • SACREIL is listed on the Official Market of the Stock Exchange of Mauritius Ltd (“SEM”)
  • SACREIL holds core real estate assets in Ghana, Tanzania and Nigeria.

Company Review for the Period Ended June 30th, 2023

  • The three properties all performed in line with budget before funding costs for the 3 months ended 30 June 2023.
  • Nigeria’s economic growth weakened, and Real GDP growth fell from 3.3% in 2022 to 2.4% year-on-year.
  • The World Bank is forecasting Ghana’s economy to slow further to 1.6 % in 2023.
  • The IMF is projecting Tanzania’s economic growth at 6,1% and Nigeria at 3% growth for the year.
  • The Company’s gross asset value has remained flat at US$90,7million.
  • The loan to value ratio (total 3rd party debt in the group divided by the group’s total gross asset value) remained at 51.6%

Company Outlook

  • The Company intends to seek approval from the SEM to present to the Shareholders a proposal to recapitalise SACREIL.
  • Class A shareholders who wish to exit SACREIL will be given the opportunity (“Exit Process”) to sell their SACREIL shares.
  • The Company was initially required to repurchase the exit shares within a period of two-years.
  • The repurchase period was extended by six months due to unfavourable market conditions.
  • An update regarding the Proposal and the Exit Process will be provided to Shareholders before the end of 2023.
  • Shareholders are advised to exercise caution when dealing in the shares of SACREIL until a further announcement is made.

Key Takeaway

Sanlam Africa Core Real Estate Investments Limited (SACREIL) is a Global Business License holder based in Mauritius that holds core real estate assets in three countries. All three properties performed in line with budget before funding costs for the 3 months ended 30 June 2023 despite trading in difficult markets, especially in West Africa. The Company’s Gross Asset Value has remained flat at US$90,7million despite an increase in the base cost of debt. The Company intends to seek approval from the SEM to present to the Shareholders a proposal to recapitalise SACREIL, and a proposal to investors to exit SACREIL.

Useful links

About Sanlam Africa Core Real Estate Investments Limited (SANLAM.mu)

Sanlam Africa Core Real Estate Investments Limited (SACREIL) is a long-term investor in commercial real estate in a number of sub-Saharan African nations. SACREIL was founded in Mauritius in April 2012. While assuming little development risk, SACREIL seeks to acquire finished commercial real estate assets with dependable and expanding income streams. Risks related to politics, business, and society are assessed throughout the investment lifetime and dealt with accordingly. SACREIL aims to provide a US Dollar return to its investors. Sanlam Africa Core Real Estate Investments Limited is listed on The Stock Exchange of Mauritius.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.

Related articles