Mas chief executive Lukas Nakos said the Prime Kapital joint venture opportunities had substantially exceeded initial expectations, with the venture now targeting in excess of 1bn (R15.33bn) of high quality developments across the European market.
“In order to fund this pipeline, Mas has increased its commitment to the Prime Kapital development joint venture from 200million up to a maximum of 350m of preference share capital, on the same terms as the previous commitment. Mas’ equity stake in the Prime Kapital development joint venture remains at 40percent,” Nakos said.
Under the terms of the original agreement entered into March last year, between Prime Kapital and Mas, Prime Kapital as a main partner had committed to invest an initial 30m for ordinary equity in the joint venture, for a 60% equity interest, while Mas had committed an initial 20m for ordinary equity in the joint venture, for a 40%equity interest.
The two entities entered into the development joint venture with the aim of exploiting commercial interests in Central and Eastern Europe. Mas’ income-generating property portfolio for the year ended June grew 91% from 242.6m in the comparative period to 463.4m in the period under review. Mas, which has its primary listing on the Luxembourg Stock Exchange, yesterday said that its rental income surged from 14.2m in the previous period to 27m in the year.