MAS plc concludes 2 major property deals

MAS plc has concluded two major property transactions which will considerably extend its present portfolio of properties in Germany, Switzerland and the UK.

AltX-listed property group MAS plc has concluded two major property transactions which will considerably extend its present portfolio of properties in Germany, Switzerland and the UK.

Both acquisitions are in Scotland, the one in Glasgow, the other in Edinburgh, and both have been funded from the capital raised by MAS plc locally in the second half of the year, the company said on Tuesday.

The property in Glasgow is an A-class retail building located on one of the city's main boulevards in a prime retail area.

Acquired for GBP 5 million, the building produces a strong income stream from its single long-term tenant, HMV UK. Rental is guaranteed by HMV's parent company, EMI plc.

The second acquisition is through a £5.5 million investment in a South African consortium headed by Artisan Real Estate Investors which has acquired a 64 000 m2 site in Edinburgh's historic old town.

Amongst the other members of the consortium, backed by Sanlam, is the Atterbury property group.

A highly ambitious project of £300 million was originally planned for the site, known as Caltongate, but the previous owner, Mountgrange Capital, ran into financial difficulties and was placed under administration in 2009 before the project was able to take off.

In its acquisition of the site the consortium has the full backing of the City of Edinburgh. All previous mixed-use consents granted by the council remain valid.

Lukas Nakos, who heads up both MAS plc and Artisan, said: "The sheer size and scale of the site, lying as it does at the heart of one of the world's most historic city centres, offers us exceptional opportunities for a high-quality development that does justice to its unique and spectacular setting.

"We will be working in close partnership with the City of Edinburgh and local stakeholders to move forward quickly with development plans in 2012.

"Although a high-quality development, it will be less ambitious than originally conceived and will be well-attuned to the present economic climate," Nakos said.