MAS Real Estate expands its East European arm
PKM Developments, in which JSE-listed MAS has a 40% stake, has opened three new value centres in Romania
PKM Developments, the joint venture between JSE-listed property group MAS Real Estate and Central and East European shopping centre developer Prime Kapital, has announced the completion of three new value centres in Romania.
The Roman, Baia Mare and Slobozia centres, which were completed in November and December, have added 47,500m² of gross lettable area (GLA) to PKM’s income-generating portfolio, increasing the partnership’s footprint in the region and bringing the total number of centres completed by the joint venture to nine.
MAS owns 40% of the partnership, which was established in 2016, while Prime Kapital owns the balance.
MAS, which invests in Central and Eastern Europe through the partnership and directly into Western Europe, provides South African investors with euro-denominated returns, thus acting as a currency hedge against the rand.
MAS has a market capitalisation of R13.4bn.
About 60% of MAS’s revenue is generated in Western Europe, where the group has a footprint in the UK, Germany and Switzerland; the balance in Eastern Europe but the fund wants to re-balance this so that roughly half is generated from each region.
PKM has a pipeline in excess of 586,000m² of GLA that is worth more than €700m, which extends for more than five years. The major mall developments include the 100,000m² Moldova Centre in Iaşi, the second-largest city in Romania; the 50,000m² Arges Mall; as well ass the 31,000m² Dâmbovița Centre, part of a wider urban regeneration project in a densely populated residential area of Targoviste.
Said MAS CEO Malcolm Levy, “As the developments are completed, the income generation of the business will increase. Combined with increasing consumption in the region, we expect the income generated within the portfolio to show strong growth over time.”