Grit Real Estate Income Group (LSE:GR1T) has accepted a conditional binding offer for its development platform and is progressing the sale of much of its remaining property portfolio, with the Board now expecting to dispose of all of its real estate assets.

What was announced

Grit Real Estate Income Group Limited (LSE:GR1T), which is listed in London and on the Stock Exchange of Mauritius, published an update on 26 October 2026 headed "Update on Strategic Transaction, Further Portfolio Disposal Process and Continued Lender Support". The statement was first released at 13:33 and appeared again at 20:32 the same evening with the same headline. Both releases were flagged as containing inside information under Article 7 of UK MAR.

The central development is that the Board has accepted a conditional binding offer to dispose of the group's interests in Gateway Real Estate Africa (GREA) and Africa Property Development Managers Limited (APDM), together with certain associated assets and liabilities. The company refers to this as the Development Platform Transaction. Definitive transaction agreements setting out the full terms have not yet been completed, and completion will require lender approvals, the release of existing security, and regulatory and third-party approvals.

The announcement does not disclose the consideration, the identity of the buyer, or any other financial terms. It follows a formal proposal from GREA, backed by a strategic partner, announced on 29 April 2026.

A wider portfolio sale

Separately, the Board is progressing the disposal of a substantial portion of the group's remaining income-producing property portfolio, described as the Property Portfolio Transaction. An adviser ran a bid process, and the offer judged to carry the best terms has the support of the group's senior secured creditors. Those creditors have committed, subject to certain conditions, to continue providing working capital to allow the transaction to close.

Discussions with a preferred prospective acquirer are said to be advanced and due diligence is substantially complete. As with the development platform deal, completion depends on definitive agreements, lender credit approvals, security releases, and regulatory and third-party consents. No sale price, valuation or list of assets is given.

Taking the two processes together, the Board said it expects the company to dispose of all of its real estate assets. It will engage with regulators and shareholders on the future of the company's status as a publicly listed company. The announcement does not mention a delisting.

Lenders, reporting and shareholders

Grit said its major lenders have provided support covering maturity arrangements, repayment standstills, working capital and covenant waivers. The company stressed that this support is conditional and "should not be understood as an unconditional commitment to fund the Group through completion". Availability depends on agreed terms, budgets, approvals and transaction milestones, and the Board warned that further delay could increase financing and transaction costs.

The company has still not published audited results for the 18 months ended 31 December 2025, nor interim results for the six months to 30 June 2026. It said finalisation depends on discussions with lenders about covenant compliance, restructuring and amendments. Earlier notices on reporting were issued on 29 April, 30 April and 29 September 2026, and the April announcement referred to a temporary suspension of listing and trading in the ordinary shares.

The most significant line for ordinary shareholders is the Board's assessment that, given the group's financial position and the priority of creditor claims, it considers "the prospects of any recovery for ordinary shareholders to be extremely limited".

What to watch next

The next milestones are the signing of definitive agreements for both transactions and the lender, regulatory and third-party approvals needed to complete them. Investors will also look for any disclosure of consideration, the identity of the buyers, the outcome of discussions on the company's listed status, and the timing of the delayed audited and interim accounts. Michael Dorn serves as Chief Restructuring Officer.