M Core to buy seven strip malls in Romania from MAS Re in EUR 49 mln deal
<p>South African property developer MAS RE has <a rel="noopener" target="_blank">entered </a>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.&nbsp;</p>

<p>The net cash proceeds are estimated at EUR 43.5 million after working capital adjustments.&nbsp;</p>

<p>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.</p>

<p>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.</p>

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

<p>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.</p>

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

<p>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.</p>

<p>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.</p>

<p><em>(Photo: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Vlad Ispas/ Dreamstime</a>)</em></p>

<p><em>iulian@romania-insider.com</em></p>