South African property developer MAS RE has entered negotiations with M Core to sell seven strip malls in Romania for EUR 49 million, a value 3.1% higher than the EUR 47.5 million appraisal by Colliers Romania. 

The net cash proceeds are estimated at EUR 43.5 million after working capital adjustments. 

The strip malls included in the transaction are located in various Romanian cities: Focșani: 6,100 sqm, EUR 13.1 million; Slobozia: 6,700 sqm, EUR 10.6 million; Râmnicu Sărat: 4,000 sqm, EUR 6.6 million, Sebeș: 3,200 sqm, EUR 5.8 million, Târgu Secuiesc: 3,200 sqm, EUR 11.12 million, Făgăraș: 3,200 sqm, EUR 9.97 million, and Gheorgheni: 1,400 sqm, EUR 12.74 million.

MAS RE's decision to divest these assets aligns with its strategy to focus on larger retail properties and malls, enhancing liquidity and capital efficiency.

The deal, subject to the approval of Romania's Competition Council, is expected to close by March 18, 2025.

MAS RE stated that the proceeds from the sale will be used to reallocate capital towards fulfilling its financial obligations, including bonds maturing in May 2026.

"This transaction is consistent with our strategic goals of efficient capital allocation and proactive liquidity management," the company stated.

M Core, a pan-European real estate group managing assets worth over EUR 7 billion, entered the Romanian market in 2022 by acquiring 25 retail parks from Mitiska REIM for EUR 219 million. This acquisition was conducted via LCP Group, a subsidiary of M Core that manages assets exceeding EUR 3 billion. The group also includes companies such as Evolve Estates, Sheet Anchor, Proudreed, and Square 7.

MAS RE, which owns a portfolio of malls and retail parks across Romania, Bulgaria, and Poland valued at over EUR 1 billion, described the properties being sold as high-performing but no longer central to its strategy of prioritizing larger retail assets. This marks a significant restructuring of its Romanian portfolio while supporting its broader financial commitments.

(Photo: Vlad Ispas/ Dreamstime)

iulian@romania-insider.com