MAS eyes Europe portfolio

Property company, MAS, has announced its entry into negotiations to acquire a dominant regional shopping centre in Central and Eastern Europe. The CEO of MAS, Lukas Nacos, provided insight into the company's expansion strategy during a recent interview with CNBC Africa. Nacos shared that MAS currently has total assets of approximately 480 million euros and had updated its strategy earlier in the year to include expanding investments into Central and Eastern Europe. The acquisition of the shopping centre in Poland marks a significant step in this strategic expansion plan, with Nacos expressing excitement about the potential earnings growth resulting from this venture. The shopping centre in question boasts a 32,000 square metre gross leasable area, and Nacos emphasized that MAS plans to actively manage the asset in collaboration with Prime Capital, a team with extensive experience in the region. The partnership aims to extend the shopping centre by 6,500 square metres and reconfigure the layout to enhance foot traffic and increase revenue streams. In terms of financial projections, Nacos revealed that MAS is targeting a 30% annual growth in earnings per share and distributions per share. The company has allocated over three and a half billion rounds to a joint venture with Prime Capital, with an expected return rate of over 15%. Additionally, MAS has earmarked further capital for income-generating acquisitions in partnership with Prime Capital. Beyond the Central and Eastern European venture, MAS has also been active in other regions. Nacos highlighted the company's successful developments in Germany, Poland, Munich, and Edinburgh. In Edinburgh, MAS has completed two out of three hotels, retail units, and an award-winning commercial project known as the Arches development. Their ongoing projects include student accommodation apartments and a 25-year lease agreement with the British Government for an office space. Addressing the potential impact of Brexit on MAS' operations, Nacos acknowledged the currency devaluation effects on the company's UK exposure. He noted that MAS' UK exposure is currently around 25% but is steadily decreasing as the company shifts focus to Central and Eastern Europe. Despite the uncertainties surrounding Brexit, Nacos remains cautiously optimistic about the future economic growth in both the UK and Europe. In conclusion, MAS' strategic expansion into Central and Eastern Europe signifies a significant milestone for the company. With a strong focus on income-generating acquisitions, solid partnerships, and a commitment to growth, MAS is poised for continued success in the European property market.