| Tue 20 Dec 2011, 14:00 | | MSP - MAS PLC - Acquisition of 154-160 Sauchiehall Street Glasgow and |
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MSP
MSP
MSP - MAS PLC - Acquisition of 154-160 Sauchiehall Street, Glasgow and
investment into Artisan Investment Projects 10 Limited
MAS PLC
(Incorporated in the Isle of Man)
(Registration number 2893V)
(Registered as an external company in the Republic of South Africa)
(Registration number 2010/000338/10)
JSE share code: MSP
ISIN: IM00B4LFGH00
("MAS" or the "Company")
ACQUISITION OF 154-160 SAUCHIEHALL STREET, GLASGOW AND INVESTMENT INTO ARTISAN
INVESTMENT PROJECTS 10 LIMITED
INTRODUCTION
Shareholders are advised that MAS, which has a primary listing on the Luxembourg
Stock Exchange and a secondary listing on the Alternative Exchange of the JSE,
has concluded two transactions as detailed below.
Through its wholly-owned subsidiary Sauchiehall Street Properties 1 Limited, MAS
has completed the acquisition of 154-160 Sauchiehall Street, Glasgow (the
"Sauchiehall Street property"). The Sauchiehall Street property is a high street
retail unit in one of Glasgow`s primary shopping locations.
The purchase price for the Sauchiehall Street property was an amount of EUR5 939
500* (GBP5 000 000), before stamp duty and acquisition expenses. No debt has
been used to fund the acquisition.
In addition, MAS has concluded a subscription agreement in terms of which the
Company has agreed to invest EUR6 533 450* (GBP5 500 000) in Artisan Investment
Projects 10 Limited, the acquisition vehicle of vacant land (the "Caltongate
property") in the heart of the Edinburgh old town ("Caltongate investment").
Both the acquisition of the Sauchiehall Street property and the Caltongate
investment were funded from the proceeds raised in terms of the capital raising
which was concluded in September 2011.
RATIONALE FOR THE TRANSACTIONS
Sauchiehall Street property
MAS is of the view that the Glasgow retail market currently offers value for
investors. Glasgow is the largest city in Scotland and the third largest in the
UK with a resident population of 610,000 and a catchment population of some 2.3
million. It is also the UK`s second largest retail provider behind London.
As a result, the management team conducted a detailed review of opportunities
available in the market. This property ranked as the most favourable of several
opportunities examined.
The Sauchiehall Street property benefits from its close proximity to Buchanan
Galleries, which anchors the north end of the city`s prime retailing
thoroughfare of Buchanan Street.
The Sauchiehall Street property is an A-class retail building located on one of
Glasgow`s main boulevards with convenient access to the main parking facility in
the area. The property benefits from 3 levels of space, with the ground and
first floor exclusively for retail, and the second floor for storage of retail
goods.
The Sauchiehall Street property is currently tenanted by HMV UK with a guarantee
from EMI Group plc. Therefore a strong income stream and asset management
opportunities are present.
It is expected that the acquisition of the Sauchiehall Street property will
contribute to the growth in core income for the shareholders of MAS.
Caltongate investment
MAS has agreed to invest EUR6 533 450* (GBP5 500 000) as part of a consortium of
investors into Artisan Investment Projects 10 Limited. This investment vehicle
will be managed by a joint venture between Artisan Real Estate Investors Limited
and Atterbury Asset Managers (Mauritius) Limited.
The Caltongate property represents a substantial development opportunity in the
most prominent gap site in the Edinburgh city centre. Planning is already in
place for residential, hotel and commercial uses on the site. Development is
expected to begin in 2012.
SALIENT TERMS OF THE TRANSACTIONS AND CONDITIONS PRECEDENT
Sauchiehall Street property acquisition
The effective date of the acquisition was 14 December 2011. The current annual
rent roll, paid quarterly in advance, is EUR445 463 (GBP375 000). Scottish
heritable title has been acquired free of all encumbrances.
All conditions precedent in respect of the acquisition of the Sauchiehall Street
property have been fulfilled.
Caltongate investment
The subscription date for the investment into Artisan Investment Projects 10
Limited was 19 December 2011. In addition to acquiring the Scottish Heritable
title on the aforementioned site, Artisan Investment Projects 10 Limited have
approached the Edinburgh City Council to acquire further properties that are
owned by the Council and this has been tabled for debate by the full Council on
22 December 2011.
All conditions precedent in respect of the Caltongate investment have been
fulfilled.
THE PROPERTIES
Details of the Sauchiehall Street property are as follows:
Property Region Sector Weighted Rentable Purchase
description average area price
rental (m2) (EUR)
per m2
154-160 Glasgow, Retail EUR465* 958.4 5 939 500*
Sauchiehall Street Scotland
The Caltongate property is currently a single tract of vacant land.
* Figures as disclosed in euros, the functional currency of the Company. The
assumed exchange rate at the close of business on 13 December 2011 is 1.1879
EUR/GBP.
20 December 2011
For further information please contact:
MAS plc, Helen Cullen +44 1624 625000
Charl Brand, M Partners, Luxembourg +352 263868
Java Capital, South African Sponsor +27 11 283 0042
Date: 20/12/2011 14:00:16 Produced by the JSE SENS Department.
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