https://www.engineeringnews.co.za

MAS acquires Romanian shopping centre

30th April 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

In line with the group’s strategy of investing across the broader European market, MAS Real Estate will acquire the Bucharest-based Militari shopping centre for €95-million.

The property will be acquired from MD CE Holdings and Atrium Turkey Samsun, two wholly-owned subsidiaries of Atrium European Real Estate.

Militari, which is located in the capital city of Romania, has benefitted from extensive residential densification in its immediate surroundings since its opening in 2009 and benefits from an aggregate catchment of about 294 000 people within a 45-minute drive.

Current residential schemes under development will add a further 4 000 apartments in the immediate vicinity, with scope for significant continued development in the area, MAS said. This is expected to lead to strong growth in footfall.

With 53 tenants spread across 56 416 m2 of gross lettable area, and 2 500 parking spaces, the annual net operating income of Militari is €7.1-million at a weighted average rental of €10.60/m2 a month.

The asset, MAS explained, provides stable underlying income over the medium term, with good prospects for future growth that will drive MAS’ direct investment return.

It is expected that lease extensions and some capital expenditure will enhance income levels, with the prospect of new competition remaining low with nearby residential developments contributing to drive growth in footfall.

Additionally, the company noted that there is a capacity to significantly extend or redevelop the centre as demand grows in the medium term and beyond.

The acquisition is, however, subject to conditions precedent that are standard for a transaction of this nature, as well as the obtaining of certain permits from the relevant local authorities in Bucharest, MAS said.

Completion of the acquisition is expected to take place within the next three months.

“This centre enhances our current income-generating portfolio and supports our strategic focus of delivering high-quality and growing distributions on a sustainable basis over time. The transaction is testimony of our disciplined investment approach to make sustainable long-term investments,” MAS CEO Morné Wilken commented.

He further noted that the centre is well positioned and provides a stable underlying income.

“We believe we can unlock value through active asset management and some capital expenditure to enhance income levels. As a number of current and future residential developments are completed in close proximity to the centre, we expect demand to grow, allowing for a significant extension or redevelopment of the centre to further drive growth in income.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.108 0.161s - 137pq - 2rq
Subscribe Now