MAS REAL ESTATE INC - Disposal of investment property to value of 24.8 million in Germany, update on further disposals under negotiation

Disposal of investment property to value of €24.8 million in Germany, update on further disposals under negotiation

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”)


DISPOSAL OF INVESTMENT PROPERTY TO THE VALUE OF €24.8 MILLION IN GERMANY AND UPDATE ON FURTHER DISPOSALS 
UNDER NEGOTIATION


INTRODUCTION

Shareholders are advised that MAS, through its wholly owned subsidiary, Intonata Capital S.a.r.l., has
entered into an agreement (“the transaction”) for the sale of its retail property located in Bruchsal, Germany
(“the property”). The purchaser is Neo Retail Investment 1 GmbH & Co. KG, which is a special purpose
investment vehicle held by the fund Rendite Real UI-Segment Sigma. GPEP GmbH, a leading asset
management group based in Germany, is acting as asset manager in this transaction.

RATIONALE FOR THE TRANSACTION

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 TRANSACTION

The aggregate purchase consideration under the transaction (“sale price”) for the property is €24.8 million
(excluding VAT). The net expected cash proceeds from the transaction, post settlement of €11.3 million of
secured debt, transaction costs, tax, early debt repayment penalties and other costs are approximately €10.9
million (final bank settlement figures are dependent on closing dates) and are broadly in line with expectations
regarding net proceeds as disclosed in the Company’s consolidated financial statements as at 30 June 2020.
The Directors are satisfied that the value of the property, as determined by the directors of MAS, is consistent
with the agreed sale 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 No. 47 of
2000 or otherwise.

Completion of the disposal is subject to certain conditions precedent which include compliance with
procedures for the exercise of pre-emptive and related consent rights that exist in favour of the City of
Bruchsal. Transaction closing is expected to occur by 31 March 2021.

As at 30 June 2020, the weighted average monthly rental per square metre of the property amounts to €15.10
and the gross lettable area was 7,100 sqm (rounded to the nearest hundred square metres). The aggregated
net operating income of the property for the financial year ended on 30 June 2020 (extracted from the audited
consolidated annual financial statements for the year ended 30 June 2020 prepared in terms of International
Financial Reporting Standards) was €1.3 million.

The transaction is implemented as an asset sale with limited representations and warranties, consistent with
general practice for a transaction of this type.

CATEGORISATION OF THE TRANSACTION

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

OTHER TRANSACTIONS

Shareholders are advised that further transactions to the value of approximately €113.6 million are at
advanced stages of negotiation and expected to conclude prior to the release of financial results for the six-
month period to 31 December 2020.

24 December 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: 24-12-2020 12:49:00
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