Acquisition Of Property Portfolio 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 PROPERTY PORTFOLIO IN GERMANY
INTRODUCTION
Shareholders are advised that MAS, through three wholly-owned subsidiaries, Brandenburg Capital S.a.r.l.,
Magdeburg Capital S.a.r.l. and Leipzig Capital S.a.r.l. has concluded a sale and purchase agreement (“SPA”) to
acquire a portfolio of properties throughout northern and central Germany (the “properties”) under a sale and
leaseback arrangement from various subsidiaries of Edeka MIHA AG (the “acquisition”).
RATIONALE AND SALIENT TERMS OF THE ACQUISITION
The purchase price for the acquisition is EUR56 010 400 which is anticipated to be settled out of cash
resources. The properties comprise 20 buildings operated either as supermarkets or cash and carry outlets let to
part of Edeka MIHA AG, a leading supermarket brand, with a total site area of 182 554 sq mt. of which 51 109 sq
mt is lettable together with 1 552 parking spaces and a weighted average lease term of 15 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 EUR3 849 000 per annum and the properties are expected to
deliver an average of 6.5% core income after costs and income tax.
DETAILS OF THE PROPERTIES
Rent
Site Rental Rent /sq
Address Size area Parking p.a. mt Valuation
State sq mt sq mt Spaces EUR EUR in EUR
Berlin Treptow, Heidelberger Strasse 90 Berlin 6,984 1,674 85 291,000 14.49 4,610,000
Berlin-Spandau, Flankenschanze 32 Berlin 3,893 1,432 145 244,000 14.20 3,730,000
Gröningen, Goethepromenade 13 Sachsen Anhalt 8,916 1,170 75 92,000 6.55 1,300,000
Haldensleben, Waldring 110 Sachsen Anhalt 5,617 1,470 42 130,000 7.37 1,870,000
Holzminden, Bahnhofstr 12 Niedersachsen 6,310 1,924 160 249,000 10.78 3,690,000
Müllrose, Alte Poststr 1 Brandenburg 8,824 1,676 48 261,000 12.98 3,850,000
Nebra, Erlenweg 3 Sachsen Anhalt 6,900 1,423 66 140,000 8.20 2,020,000
Nienburg (Saale), Adolf Meyer Str 15 Sachsen Anhalt 3,884 989 70 99,000 8.34 1,400,000
Oldisleben, Marktstrasse 8 Thüringen 3,696 965 54 109,000 9.41 1,480,000
Panketal, Bernauer Str 44-53 Brandenburg 8,949 1,656 100 233,000 11.73 3,630,000
Potsdam, Rudolf Breitscheid Str 193 Brandenburg 4,098 2,012 35 250,000 10.35 3,900,000
Raguhn, Hallesche Str 51a Sachsen Anhalt 6,526 859 49 87,000 8.44 1,210,000
Sandersdorf- Brehna, Platz des Friedens 10 Sachsen Anhalt 7,703 1,630 95 213,000 10.89 3,170,000
Sangerhausen, Bahnhofstr 21 Sachsen Anhalt 1,911 888 18 91,000 8.54 1,250,000
Thale- Neinstedt, Neinstedter Haupstr 29 Sachsen Anhalt 2,779 709 40 80,000 9.40 1,080,000
Wilhelmshafen, Am Wiesenhof 147-148 Niedersachsen 1,379 1,140 0 85,000 6.21 1,190,000
Magdeburg, Ihleburger Str 6 Sachsen Anhalt 28,054 8,428 150 320,000 3.16 4,260,000
Wernigerode, Otto von Guericke Str 1a Sachsen Anhalt 18,136 6,455 120 300,000 3.87 3,950,000
Schkeuditz,Westringstrasse 183 Sachsen 30,311 9,167 130 375,000 3.41 4,980,000
Soltau, Vor dem Weiherbusch 9 Niedersachsen 17,684 5,442 70 200,000 3.06 2,560,000
The board of MAS is satisfied that the values of the properties are within an acceptable range of 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
All material conditions precedent (“CPs”) for the Berlin-Treptow, Berlin-Spandau, Sandersorf-Brehna,
Haldensleben, Holzminden, Mülrose, Nebra, Panketal and Potsdam (“essential purchase objects”) are fulfilled.
The effective date of the acquisition is anticipated to be by the end of August 2016 and is subject to various
outstanding CPs on all the properties other than the essential purchase objects:
- Confirmation that the municipality’s waiver of statutory pre-emptive rights and all permits for the execution
of the SPA are with the notary;
- Registering the priority notice of conveyance or confirming such registration is secured by the notary;
- Ensuring there are no obstacles to the contractual registration of ownership of the buyer (except missing
clearance certificates regarding real estate transfer tax and the application of transfer of ownership to the
land register);
- Cancellation of easements / land charges documents to be handed over to the notary;
- Waiving any further security rights by the seller's financing bank; and
- Handing over the necessary approvals of the respective authorities for the properties located in a re-
development or development area to the notary (regarding the SPA, the leases and land charges still to be
registered (up to 120% of the single purchase price per respective property plus 18% interest and 15%
one-time payment).
Should any of the CPs not be met for any of the properties by the effective date, those properties will be not be
acquired. If any of the properties are not acquired, a further announcement will be released detailing which
properties were not acquired.
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.
5 April 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: 05/04/2016 12:00:00
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