Disposal of investment property in Buchs, Switzerland
MAS Real Estate Inc.
Registered in the British Virgin Islands
Registration number 1750199
JSE share code: MSP
LEI code: 213800T1TZPGQ7HS4Q13
(“MAS” or “the Company”)
DISPOSAL OF INVESTMENT PROPERTY IN BUCHS, SWITZERLAND
Shareholders are advised that MAS, through its wholly-owned subsidiary, Petrusse Capital S.á.r.l., has entered
into an agreement (“the transaction”) for the sale of its single-tenant logistics property with associated office
space in Buchs, Switzerland (“the property”). The purchaser is Swiss Prime Site Immobilien AG, a listed real
estate company based in Switzerland.
RATIONALE FOR THE DISPOSAL
Shareholders are referred to previous announcements in relation to the change in investment strategy involving
the disposal of Western European investment property of the Company and a redeployment of capital to more
attractive investments in Central and Eastern Europe. The transaction is a result, and consistent with the
objectives, of this strategy. The proceeds of the transaction after taxes and mandatory settlements of senior debt
facilities, will be redeployed in line with the above strategy.
SALIENT TERMS OF THE DISPOSAL
The sale price of the property is CHF 38.5 million (EUR 36.2 million), excluding VAT (“sale price”) which will be
settled in cash upon completion. Completion is subject to the satisfaction of a condition precedent which requires
practical completion of construction and extension works. The completion of the applicable construction works,
that are estimated to cost CHF 5.9 million (EUR 5.6 million) in aggregate and that have commenced in 2020, have
been contracted and are continuing according to schedule as at the date of this announcement. The transaction
is anticipated to complete on or before 31 December 2020. The Directors are satisfied that the value of the
property after completion of the applicable construction works, as determined by the directors of MAS is equivalent
to the agreed sales price. 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.
As at 31 December 2019, the weighted average monthly rental per square metre of the property amounts to CHF
19.37 (EUR 18.23) and the gross lettable area was 5,699 sqm. The annualised net operating income of the
property based on the reviewed consolidated interim results of the MAS group for six months ended 31 December
2019 (prepared in terms of International Financial Reporting Standards) is CHF 1.2 million (EUR 1.1 million). This
is expected to increase following the completion of the extension works.
The transaction is implemented as an asset sale with limited representations and warranties, consistent with
general practice for a transaction of this type, provided by the selling subsidiary.
CATEGORISATION OF THE DISPOSAL
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 8 July 2020 of 18:00 CET was used for the calculation
of the above figures.
MAS is listed on the Main Board of the Johannesburg Stock Exchange.
9 July 2020
For further information please contact:
Dan Petrisor, MAS Real Estate Inc. +40 741 184 921
Java Capital, JSE Sponsor +27 11 722 3050
Date: 09-07-2020 05:05:00
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