Stock Exchange News Service

Acquisition of investment property in Germany

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



Shareholders are advised that MAS, through a wholly owned subsidiary, Flensburg Limited (the "purchaser"), has
entered into a sale and purchase agreement (the SPA) to acquire a shopping centre located in Flensburg, Germany,
from Commerzbank Aktiengesellschaft (the "acquisition"). This is one of the assets previously disclosed as part of the
acquisition pipeline and is in line with the group's investment strategy of expanding the German portfolio through the
selective acquisition of good quality assets where there is potential to unlock further value.


The purchase price for the acquisition is EUR 62.55 million ("purchase price") of which EUR 750,000 will be retained
until the lease area of the new tenant Netto is handed over in accordance with the terms of the lease agreement. The
acquisition and associated costs will be funded using circa EUR 25 million of cash with the balance from third party
mortgage debt finance, which will be drawn down on completion.

The purchase price is to be settled in cash and is payable once the following outstanding conditions to the SPA have
been fulfilled:

    -   satisfactory completion by the Seller, at its own cost, of various repair works at the property;
    -   confirmation that the relevant local authorities have waived their pre-emption rights; and
    -   completion of various other procedures of an administrative nature, and normal for this type of transaction.

Completion of the acquisition is expected to take place no later than 31 January 2019. The SPA contains warranties
that are typical of a transaction of this nature.

Built in 2006, the shopping centre, known as "Flensburg Galerie", is located in the inner city of Flensburg 
and is the only shopping centre with direct access to the highly frequented and prime shopping street "Holm". 
The independent city of Flensburg is in Schleswig-Holstein in the North of Germany, adjacent to the Danish border. 
With 88,000 inhabitants, Flensburg is an important economic and regional centre both within Schleswig-Holstein 
and across the border to Denmark. The catchment area within a 45-minute drive is approximately 500,000.

The shopping centre comprises 83 units with a total lettable area of approximately 25,540 square metres. Tenants
include a wide range of retailers, including REWE, Muller, KULT and Saturn. The opening of a Netto supermarket in
early 2019 will drive further footfall to the centre. In addition, the centre benefits from its own underground 
parking with 250 spaces and is one of the main car parks for the city centre.

The current passing rent is EUR 4.09 million per annum, at a weighted average rental of EUR 15.10 per square metre
excluding the car park, plus additional income of approximately EUR 402 414 (year to 31 December 2017) from revenue-
based leases. The current vacancy is 14%. The annual net operating income of the property is EUR 3.68 million after
the deduction of non-recoverables relating to the vacant space and contractual clauses, as per unaudited management
accounts prepared in terms of IFRS for the 12 month period ended 31 December 2017, the quality of which the Company
is satisfied with.


The acquisition represents a unique opportunity for MAS to leverage its asset management platform and grow the rental
income of the shopping centre from current levels, with the plans to let the vacant space core to the investment case
together with the restructuring of various leases. The asset is in a well-established and strong retail location and, with
its anchor tenants, provides significant opportunities for future growth by actively reducing its vacancy. There is also
scope for some reconfiguration in the medium term. The Company expects the acquisition to deliver an initial return on
equity in excess of 10% after gearing which will drive the Company's direct investment return.
The vendor is Commerzbank, which has been responsible since May 2017 as a run-off company for the disposal of the
assets of the German fund "CS EUROREAL". The fund, which has been selling assets since May 2012, will be finally
wound up in 2019.

The purchase price reflects the fair value attributed to Flensburg Galerie 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 acquisition is classified as a Category 2 transaction in terms of the JSE Listings Requirements and as such is not
subject to shareholder approval.

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.

8 November 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
Investor Relations, Lizelle du Toit                                              +27 82 465 1244

Date: 08/11/2018 01:30:00 
Supplied by
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.