May 9 (SeeNews) - MAS Real Estate investment company said that it plans to acquire six retail centres in Romania from PKM Developments, a joint venture with its peer Prime Kapital, for a total of 319.7 million euro ($338 million).
The transaction is expected to be completed by August 15, the Johannesburg-listed MAS Real Estate said in a statement last week.
You can subscribe to our M&A newsletter here
The centres are owned by PKM Developments through six subsidiaries - PK Grizzly, PK Development One, PK Green, PK Denim, PK Bronze and PK Vanilla.
The portfolio comprises Sepsi, Barlad and Prahova value centres, all opened in 2021, Dambovita Mall, opened in 2020, as well as DN1 and Zalau value centres, both opened in 2019. The six assets comprise a total 132,800 sq m of GLA.
The acquisition provides MAS with the opportunity to substantially outperform its direct acquisition targets via attractive direct acquisitions, by adding increased scale to its operations in Central and Eastern Europe (CEE), the company said. The deal will also help to mitigate the potential for exacerbated drag on real total returns per share and the deterioration in real value of cash holdings due to potential higher than expected medium-term inflation.
In 2019, MAS Real Estate acquired a property portfolio consisting of nine shopping value centres in Romania for 112.97 million euro from PKM Developments Limited.
Founded in 2008 and registered on the Isle of Man, MAS Real Estate has assembled, through acquisition and development, a portfolio of retail, office, industrial, logistics and hotel properties in Romania, Germany, the United Kingdom, Bulgaria, Poland and Switzerland. MAS is listed on the main board of the Johannesburg Stock Exchange.
In May 2021, the European Bank for Reconstruction and Development (EBRD) invested 24.7 million euro in an inaugural green bond issued by a subsidiary of MAS Real Estate in order to support the company's new acquisitions in Romania and CEE.
PKM Developments was established by MAS Real Estate and Prime Kapital in March 2016.
Prime Kapital, with offices in Romania, Bulgaria, the Netherlands, Luxembourg and the Isle of Man, is focused on retail and residential segments in CEE.
($=0.9459 euro)