Stock Exchange News Service

Disposal of investment property in Edinburgh, UK

MAS Real Estate Inc.
Registered in the British Virgin Islands
Registration number 1750199
JSE share code: MSP
ISIN: VGG5884M1041
LEI code: 213800T1TZPGQ7HS4Q13



Shareholders are advised that MAS has, through its wholly-owned subsidiary, New Waverley 12 Limited, entered into
an agreement for the sale of the Premier Inn and Hub by Premier Inn hotels and associated retail at 31 – 37 East
Market Street in Edinburgh ("the property") with effect from 12 October 2018 ("the disposal"). The purchaser is an
institutional German investment manager, Union Investment Real Estate GmbH.


The property forms part of the award-winning New Waverley development. Following the recent successful pre-letting
and sale of the adjacent government offices there has been significant investor interest in the hotels, which generate
secure income until lease breaks in February 2036. The disposal enables MAS to benefit from the current strong
demand in the UK hotel and long income market sectors.

There continues to be strong interest in the hotel sector from investors seeking long term income streams from good
covenants in strong locations - scarcity of good quality opportunities has resulted in yields for this type of asset
reaching record highs in the UK. The disposal, at this moment in time, presents an opportunity to maximise equity
release in a competitive property market and secure an attractive development profit. This will facilitate the recycling 
of capital into further opportunities which will generate higher income returns and so add growth to shareholder returns
as part of the group's stated investment strategy.


The sale price is GBP 38 million, or approximately EUR 43.4 million ("sale price") and will be settled in cash on
completion. Subject to the satisfaction of the suspensive condition, the disposal is anticipated to complete on or
around 7 November 2018. MAS may also be required to make a contribution of up to GBP 150,000 towards external
works to one of the assets at the property.

The asset is being sold at its most recent fair value of GBP 38 million (EUR 43,359,197), 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. The annual
passing rent on the property amounts to GBP 1,706,600 (EUR1,925,898) and the rental area is 8,346 sqm. This
translates to a passing rent per square metre of GBP 17.04 (EUR 19.44) per month. The annual net operating income
of the property is GBP 1,547,169 (EUR 1,765,369).

The disposal is subject to MAS finalising third-party arrangements by 31 October 2018. Normal warranties and
indemnities for a transaction of this nature have been provided by MAS.


The disposal is categorised as a Category 2 transaction in terms of the JSE Listings Requirements and as such is not
subject to shareholder approval.

The closing European Central Bank exchange rate as at 11 October 2018 of GBP 0.8764:1 EUR was used for the
calculation of the above figures.

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.

16 October 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
Lizelle du Toit, Investor Relations                                +27 82 465 1244

Date: 16/10/2018 11:30:00 
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