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MAS REAL ESTATE INC - Acquisition of investment property in the UK

Release Date: 17/12/2014 10:00
Code(s): MSP     PDF:  
Wrap Text
Acquisition of investment property in the UK

MAS Real Estate Inc.
Registered in the British Virgin Islands
Registration number 1750199
Registered as an external company in the Republic of South Africa
Registration number 2010/000338/10
SEDOL (XLUX): B96VLJ5
SEDOL (ALTX): B96TSD2
JSE share code: MSP
ISIN: VGG5884M1041
(“MAS” or the “Company”)


ACQUISITION OF INVESTMENT PROPERTY IN THE UK


INTRODUCTION

Shareholders are advised that MAS has, through two wholly owned subsidiaries, completed the acquisition of an
industrial warehouse and office park situated close to the town centre of Chippenham, UK (the "property") for a
purchase price (before acquisition expenses) of EUR 40 250 000 (the “acquisition”).

The purchase price for the acquisition was entirely funded from the proceeds of the capital raising undertaken in
February 2014. The property extends to almost 20 hectares of land in total, split over three zones, with zones 1 and 2
comprising 11.7 hectares of industrial, warehouse, office and storage space. Zone 3 is a mix of short-term and vacant
industrial and warehouse buildings comprising 7.7 hectares of space. The initial net yield on total purchase price is
4.6%.

RATIONALE AND SALIENT TERMS OF THE ACQUISITION

MAS believes that this property is very well-located within one mile of the town centre and adjacent to the town's train
station. The solid industrial and office tenants, several of which are large multi-jurisdictional businesses, in zones 1
and 2 of the property fit well with the Company's income strategy and the forecast average core income yield is 6.5%
from these two zones alone. Zone 3 is suitable for short-term lets but primarily offers strong development potential.

This acquisition will become the largest single asset in MAS property portfolio in terms of both size and value and
demonstrates the increased profile of the Company in the European commercial property marketplace.

The effective date of the acquisition is 15 December 2014 and the current annual rent roll is EUR 2 314 000 per
annum.

All conditions precedent in respect of the acquisition have been fulfilled.


17 December 2014

For further information please contact:
Helen Cullen, Company Secretary, MAS Real Estate Inc.                                  +44 1624 625 000
Java Capital, South African corporate advisor and JSE Sponsor                          +27 11 283 0042
Charl Brand, M Partners, Luxembourg                                                    +352 263 868 602

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