MAS Real Estate : Acquisition of Investment Property in Germany.

Microsoft Word - MAS - announcement re German retail park acquisition.doc 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

SEDOL (XLUX): B96VLJ5

SEDOL (ALTX): B96TSD2

JSE share code: MSP ISIN: VGG5884M1041 ("MAS" or the "Company")

ACQUISITION OF INVESTMENT PROPERTY IN GERMANY INTRODUCTION

Shareholders are advised that MAS has, through a wholly owned subsidiary, completed the acquisition of a retail and office park to the south of Frankfurt, Germany (the "property") on 8 January 2015, for an aggregate purchase price (before acquisition expenses) of EUR 25 600 000 (the "acquisition").
The purchase price for the acquisition was entirely funded from the proceeds of the capital raising undertaken in February 2014. The property comprises two retail warehouses let to leading DIY and electronics retailers respectively, with adjacent vacant office buildings suitable for short-term letting but also offering redevelopment potential. The net initial yield on total purchase price is 6.8%.

RATIONALE AND SALIENT TERMS OF THE ACQUISITION

MAS believes that this asset is well-located with strong retail tenants which fits well with the Company's income strategy and it is expected to deliver an average of 6% core income after costs. Furthermore, there is potential to enhance the income return and create further value through the redevelopment of the vacant offices. The current annual rent roll, paid quarterly in advance, is EUR 1 900 000 per annum.
All conditions precedent in respect of the acquisition have been fulfilled.
9 January 2015

For further information please contact:

Helen Cullen, Company Secretary, MAS Real Estate Inc. [phone]
Java Capital, South African corporate advisor and JSE Sponsor [phone]
Charl Brand, M Partners, Luxembourg [phone]