Acquisition Of Investment Properties In Germany
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 PROPERTIES IN GERMANY
INTRODUCTION
Shareholders are advised that MAS, through its wholly-owned subsidiary, Instrumento Capital S.a.r.l., has
concluded a sale and purchase agreement to acquire three freehold buildings (the “properties”) in Germany
from KR Real Estate GmbH & Co. KG (the “acquisition”).
RATIONALE AND SALIENT TERMS OF THE ACQUISITION
The purchase price for the acquisition is EUR28 390 000, which is anticipated to be settled out of cash
resources. The properties comprise three cash and carry outlets let to Edeka Handelsgesellschaft Südwest
mbH, a leading supermarket brand, with a total lettable area of 21 844 sq mt. including approximately 640
parking spaces and weighted average lease term of over 14 years. The board of MAS is of the view that this
acquisition enhances the overall property portfolio of MAS and the strong tenant covenant fits well with the
Company's objective of delivering a growing income distribution.
The current annual rent roll of the properties is EUR2 065 758 per annum and the properties are expected to
deliver an average of 6.9% core income after costs, gearing and income tax.
DETAILS OF THE PROPERTIES
Property location Wiesbaden, Germany
Sector Retail
Rentable area - approx. 5,665 m² sales area;
- approx. 5,837 m² ancillary area; and
- approx. 313 parking spaces.
Weighted average rental per month per m2 8.77
Value attributable to the property EUR17 400 000
Property location Maulburg, Germany
Sector Retail
Rentable area - approx. 3,215 m² sales area;
- approx. 1,768 m² ancillary area; and
- approx. 140 parking spaces.
Weighted average rental per month per m2 7.36
Value attributable to the property EUR5 050 000
Property location Freudenstadt, Germany
Sector Retail
Rentable area - approx. 3,200 m² sales area;
- approx. 1,235 m² ancillary area; and
- approx. 186 parking spaces.
Weighted average rental per month per m2 6.58
Value attributable to the property EUR6 250 000
The board of MAS is satisfied that the values of the properties are in line with the purchase prices being paid by
MAS as the properties have been independently valued by professional valuers, Cushman & Wakefield as at
29 February 2016.
EFFECTIVE DATE AND CONDITIONS PRECEDENT
The effective date of the acquisition is anticipated to be by the end of June 2016 and is subject to various closing
conditions which are regarded as commercially sensitive but not material to MAS and therefore have not been
announced.
CATEGORISATION OF THE TRANSACTION
The acquisition is categorised as a Category 2 transaction under the JSE Listings Requirements.
MAS is dual primary listed on the Main Board of the JSE and the Euro MTF Market of the LuxSE.
24 March 2016
For further information please contact:
Helen Cullen, Company Secretary, MAS Real Estate Inc. +44 1624 625 000
Java Capital, JSE Sponsor +27 11 722 3050
Andrew Smith, M Partners, Luxembourg +352 263 868 610
Date: 24/03/2016 01:00:00
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