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JOHANNESBURG - Dual-Listed commercial property investor Mas Real Estate said yesterday that its development joint venture with Prime Kapital and its recent acquisitions would help the company achieve its targeted annual growth in dividends per share of more than 20% per annum over the next three years.

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.

Mas also reported a profit before tax of 40.2m for the year from 2.3m it had reported in the comparative period, while it reported a profit after tax of 34.5m in the period under review from 1.4m. Mas, together with Prime Kapital, have been on a buying spree in the year under review. In May the joint venture acquired two malls in Bulgaria for 62m.

In November last year, the joint venture also bought Nova Park Mall in Poland for 88.5m. In December, Mas also completed its Adagio and Retail project in the UK.

Nakos said the board would consider distributing retained earnings during forthcoming financial periods as the group pursues various highly accretive property developments, both directly and through the Prime Kapital development joint venture. “The board is of the view that the group is well placed to deliver on the targeted annual growth in distribution per share of 30percent per annum over a three year period set out at the end of 2016, along with further growth thereafter," said Nakos.

Mas shares rose 0.78% to close at R25.95 on the JSE yesterday.

- BUSINESS REPORT