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Update to the Prime Kapital Development Joint Venture

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
JSE share code: MSP
ISIN: VGG5884M1041
LEI code: 213800T1TZPGQ7HS4Q13
(“MAS” or the “company”)



On 2 March 2016, MAS announced that it had entered into a Development Joint Venture with Prime Kapital (“the
Development JV”) focused on commercial opportunities in Central and Eastern Europe (“CEE”). The development
opportunities acquired by and available to the Development JV have substantially exceeded initial expectations, with
the Development JV now targeting in excess of EUR1 billion of high quality developments across CEE. In order to
fund this pipeline, MAS has increased its commitment to the Development JV from EUR200 million to up to a
maximum of EUR350 million of preference share capital, on the same terms as the previous commitment. MAS’ equity
stake in the Development JV remains at 40%.

The increased commitment accompanies an expansion of the scope of the Development JV to include residential


The market opportunity in CEE remains compelling, with the Development JV offering many benefits to MAS,
including the following:

  i.    Access to high growth, euro denominated jurisdictions, with improving capital markets and investor sentiment
        and sufficient scale to impact significantly upon MAS’ future growth potential;
  ii.   Access to good quality assets with higher income and capital returns, and growth in such returns, that are not
        readily available at this point in the cycle in Western European markets;
 iii.   Access to an experienced team with a proven track record of delivery in the CEE market, in a manner that
        ensures MAS’ exclusive access to them for this investment strategy (being development and redevelopment
        of commercial and residential real estate assets in CEE);
 iv.    Strong alignment of interest through Prime Kapital’s long-term co-investment; and
  v.    Speed to market, given the experience of Prime Kapital’s management team and established pipeline in this

The expansion of the Development JV further strengthens the relationship between Prime Kapital and MAS.


The shortage of modern, high quality residential accommodation in capital cities across CEE provides a further
opportunity to benefit from high growth markets in which the purchasing power of residents is increasing strongly. The
Prime Kapital team is well placed to leverage its experience in CEE to exploit this opportunity. Profits from the sale of
completed residential developments will be used to support and drive distributions and distribution growth in the
periods ahead.

This announcement is voluntary and for information purposes only.

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

3 August 2017

For further information please contact:
Malcolm Levy, MAS Real Estate Inc.                                                   +44 1624 625000
Java Capital, JSE Sponsor                                                            +27 11 722 3050
Charl Brand, M Partners, Luxembourg                                                  +352 263 868 602

Date: 03/08/2017 10:37:00 
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