R1BN PAID FOR SHOP­PING CEN­TRE

Cape Times - - NEWS - | Roy Cokayne

LISTED MAS Real Es­tate has ac­quired the Flens­burg Ga­lerie shop­ping cen­tre in Ger­many for €62.55 mil­lion (R1 bil­lion). MAS said yes­ter­day that the shop­ping cen­tre was one of the as­sets it had pre­vi­ously dis­closed as part of its ac­qui­si­tion pipe­line. The com­pany said the trans­ac­tion was in line with the group’s in­vest­ment strat­egy of ex­pand­ing the Ger­man port­fo­lio through the se­lec­tive ac­qui­si­tion of good qual­ity as­sets where there was po­ten­tial to un­lock fur­ther value. It said that €750 000 of the pur­chase price for the cen­tre would be re­tained un­til the lease area of new ten­ant Netto was handed over in ac­cor­dance with the terms of the lease agree­ment. MAS said the cen­tre com­prised 83 units with a to­tal let­table area of about 25 540m², with a cur­rent va­cancy of 14 per­cent. It said the open­ing of a Netto su­per­mar­ket early next year would drive fur­ther foot­fall to the cen­tre, which ben­e­fited from its own 250 un­der­ground park­ing spa­ces. The cur­rent pass­ing rent was €4.09 ma year at a weighted av­er­age rental of €15.10 a square me­tre, ex­clud­ing the car park, plus ad­di­tional in­come of about €402 414 in the year to De­cem­ber last year from rev­enue-based leases. Mal­colm Levy, an ex­ec­u­tive direc­tor of MAS, said Flens­burg Ga­lerie was the main shop­ping cen­tre in the in­ner city of Flens­burg in Sch les wig Hol­stein in the north of Ger­many, ad­ja­cent to the Dan­ish bor­der, and its ac­qui­si­tion demon­strated MAS’s con­tin­ued abil­ity to source and ac­quire highly at­trac­tive re­tail in­vest­ments in prime lo­ca­tions. Levy said MAS’s grow­ing Ger­man plat­form was well placed to im­ple­ment a num­ber of as­set man­age­ment ini­tia­tives in the short term. Shares in MAS rose 1.34 per­cent on the JSE yes­ter­day to close at R21.95.

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