BluePeak Private Capital, an alternative asset management firm with a strong focus on Africa, has announced its investment in Grit Real Estate Income Group Limited, a pan–African real estate company.
The transaction marks the inaugural investment from the BluePeak Private Capital Fund SCSp, an impact-linked private credit and mezzanine finance facility raised during COVID-19.
According to BluePeak in a statement, the Fund reached first close at $115 million in September 2021 and is targeting a final close of $200 million later this year, with a hard cap of $250 million. It provides vital growth capital to non-cyclical, growing firms, enabling them to accelerate innovation and transformation strategies and emerge from the pandemic stronger and more resilient.
Proceeds from the Fund’s inaugural investment into Grit will be deployed to partially fund the acquisition (on a sale and leaseback basis), restoration and expansion of a prominent warehousing and manufacturing facility in Nairobi by Orbit Africa.
Orbit is a pioneering manufacturer of personal and home care hygiene products in the East African region.
The total purchase, refurbishment, and expansion cost of $ 53.6 million, is actualised by a $25 million senior debt structure backed by the International Finance Corporation (IFC), a member of the World Bank Group, and $ 28.6 million through the investment provided by BluePeak and Ethos.
As one of the largest sale and leaseback transactions across sub-Saharan Africa, the deal bolsters Orbit’s balance sheet and unlocks additional cash flow to enable the company’s expansion, increasing production to meet rising consumer demand.
Adam Hadidi, Managing Director at BluePeak Private Capital, commented: “Grit has built one of the largest and most diversified real estate platforms across Africa and proven the resilience of its portfolio.