Acquisition of investment property

MAS Real Estate Inc.
Registered in the British Virgin Islands
Registration number 1750199
SEDOL (EMTF): B96VLJ5
SEDOL (JSE): B96TSD2
JSE share code: MSP
ISIN: VGG5884M1041
LEI code: 213800T1TZPGQ7HS4Q13
("MAS" or "the Company")

ACQUISITION OF INVESTMENT PROPERTY

INTRODUCTION

In keeping with the group's strategy of investing across the broader European market, shareholders are advised that
MAS, through a subsidiary of PKM Investments S.á.r.l., has acquired the Atrium Mall shopping centre ("Atrium") in
Arad, Romania (the "acquisition") from Cosmovia Holdings Limited ("Cosmovia"), a member of the well-known Demjan
Group based in Hungary.

INVESTMENT RATIONALE

The acquisition forms part of the Company's previously disclosed acquisition pipeline in central and eastern Europe
("CEE") and complements MAS' income-generating portfolio of assets in the region. In addition, the acquisition presents
the opportunity to meaningfully increase Atrium's trading dominance and financial performance through the asset
management initiatives currently planned by the Company.

Atrium is the sole modern retail destination in Arad and the broader Arad county. The mall is well-established and
centrally located, adjacent to main transport hubs with good accessibility and visibility. The city of Arad is situated in
western Romania, close to the Hungarian border. It is the administrative capital of Arad county and forms the principal
economic hub of the area. The city has healthy demographics, which is supported by growing purchasing power, and it
benefits from a significant catchment area, with 334,000 people within a 45-minute drive.

The mall has a fashion and entertainment focus, with an approximate gross lettable area of 28,600 square metres
arranged over three floors. It is anchored by strong tenants including Carrefour, Inditex, H&M, C&A, New Yorker, LC
Waikiki, Hervis, Deichmann, Media Galaxy, Pepco, CCC and Cinema City with a 10-screen cinema.

MAS aims to improve the quality of the retail offering and customer experience through improved asset management
and the introduction of new entertainment and leisure operators to drive further footfall growth. Reconfiguration of some
parts of the mall will be considered in the medium term to enhance its configuration and increase dwell time.

SALIENT TERMS OF THE ACQUISITION

The acquisition was structured as a purchase of the entire share capital of the asset owning company, Mastweight
S.R.L. ("the Target"), a wholly owned subsidiary of Cosmovia.

The transaction value attributed to Atrium was EUR 40.5 million. The purchase price for the shares of the Target was
EUR 28.1 million, after deductions for bank debt and working capital. This was funded from resources currently available
on MAS' balance sheet.

Atrium has a current total passing rent of EUR 4.3 million per annum (equating to EUR 12.7 per square metre per
month). Atrium's turnover has grown by 8.6% in the past year. Footfall has also grown by 3.5%, to reach 5.2 million
visitors in the last 12 months of operation, with the average increase in footfall amounting to 8.1% per annum over the
last six years.

The current vacancy rate is 2.3% and the overall weighted average unexpired lease term (WAULT) is 2.8 years. Atrium's
annual net operating income for the 12 month period ending 31 December 2018 is estimated at EUR 3.5 million.

The purchase price reflects the fair value attributed to Atrium, as determined by the directors of MAS. The directors of
MAS are not independent or registered as professional valuers or professional associate valuers in terms of the South
African Property Valuers Profession Act 2000 or otherwise.

CO-INVESTMENT AGREEMENT WITH PRIME KAPITAL

The acquisition has been undertaken in terms of MAS' long-term co-investment agreement with Prime Kapital Limited.
MAS' effective economic interest in the acquisition is the equivalent of an 80% direct participation in the performance of
Atrium and a 20% participation at the weighted average cost of external funding achieved by the joint venture with Prime
Kapital, in line with the previously announced co-investment agreement. Prime Kapital will manage this acquisition under
the co-investment agreement.

PIPELINE

Further investment opportunities are being pursued and the market will be further updated as those discussions are
concluded.

CATEGORISATION OF THE TRANSACTION

The acquisition is not categorisable in terms of the JSE Listings Requirements. This announcement is therefore
voluntary and is made for information purposes only.

MAS is listed on the Main Board of the JSE and is listed and admitted to trading on the Euro MTF market of the
Luxembourg Stock Exchange.


5 December 2018

For further information please contact:
Helen Cullen, Company Secretary, MAS Real Estate Inc.                             +44 1624 625000
Java Capital, JSE Sponsor                                                         +27 11 722 3050
Charl Brand, M Partners, Luxembourg Stock Exchange Listing Agent                  +352 263 868 602
Investor Relations, Lizelle du Toit                                               +27 82 465 1244

Date: 05/12/2018 04:15:00 
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