| Thu 3 May 2012, 15:14 | | MSP - MAS Plc - Acquisition of investment property in Braehead Scotland |
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MSP
MSP
MSP - MAS Plc - Acquisition of investment property in Braehead, Scotland
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 plc" or the "Company")
ACQUISITION OF INVESTMENT PROPERTY IN BRAEHEAD, SCOTLAND
INTRODUCTION
Shareholders are advised that MAS plc, which has a primary listing on the
Luxembourg Stock Exchange and a secondary listing on the Alternative Exchange
of the JSE, has, through its wholly-owned subsidiary Braehead Properties
Limited, completed the acquisition of an industrial property (the "property")
which is situated on 10,5 acres in Braehead, Glasgow in Scotland (the
"acquisition"). The property is currently let to James Howden and Company
Limited ("Howden"), a manufacturer of high-integrity, custom-engineered
centrifugal fans and rotary regenerative heat exchangers for critical
applications in a wide range of industries.
The purchase price for the property was an amount of EUR 7 365 000* (GBP 6
000 000), before stamp duty and acquisition expenses. The historic initial
net yield on total cost is 9,52%.
RATIONALE FOR THE ACQUISITION
MAS plc believes that this property offers substantial value for investors in
terms of both income from its current tenant, Howden, and the value inherent
in its location and thus alternative uses upon expiry of the current lease
term. The current lease agreement with Howden expires in February 2016, with
a clause that allows the tenant to terminate the lease agreement in 2013.
However, the directors are in negotiations to extend the period of the lease
until at least 2020. Thereafter alternative uses of the property in the form
of redevelopment will be undertaken.
SALIENT TERMS OF THE ACQUISITION AND CONDITIONS PRECEDENT
The effective date of the acquisition was 27 April 2012. The current annual
rent roll, paid quarterly in advance, is EUR 730 363 (GBP 595 000).
All conditions precedent in respect of the acquisition have been fulfilled.
* Figures are disclosed in euros, the functional currency of the Company.
The assumed exchange rate at the close of business on 27 April 2012 is 1,2275
EUR/GBP.
3 May 2012
For further information please contact:
MAS plc, Helen Cullen +44 1624 625000
Charl Brand, M Partners, Luxembourg +352 263868
Java Capital, JSE Sponsor +27 11 283 0042
Date: 03/05/2012 15:14:01 Produced by the JSE SENS Department.
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