MAS’s move east pays dividends


MAS’s move east pays dividends


Published Date: 2019-06-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

MAS’s move east pays dividends

The Central and Eastern European property investor aims to grow its distribution by 30% between now and June 2022.

MAS Real Estate is targeting distribution growth of 30% over the next three years as it shifts its property portfolio fully into Central and East Europe (CEE) and disposes of investments in Western Europe.

In a strategy update, the property investor said it was on track to a pay a distribution of 8.75 euro cents per share for the year to end-June and was aiming to grow this by 30% by the end of its June 2022 financial year. However, it said the targeted growth wouldn't be linear as it implements a phased redeployment of capital from Western Europe into CEE over time.

MAS has just completed a three-year plan to sell pricey properties with limited growth potential in Western Europe and reinvest the capital - as well as additional debt and equity capital - in a mixture of income-generating assets with the potential for high organic growth. The move to CEE was due to strong historical consumption growth trends in the region, that it expected to continue.

Apart from its investment in shopping centres across the region, the group's joint venture with Prime Kapital, PKM Developments, also gives it exposure to residential property. It has agreed to invest a further €120 million into PKM to fund its development pipeline. It has also entered a non-binding memorandum of understanding to acquire an option to buy Prime Kapital's effective 20% interest in the joint venture, together with the management platform, for an option premium of €2 million.

Its shares closed 3.5% up at R21.08 yesterday.


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