Johannesburg-listed real estate investor MAS (JSE: MSP) announced it reached a binding agreement to sell its six open-air shopping malls in Romania, with a combined gross leasable area (GLA) of 125,000 square metres, at a value of EUR 281 million. The buyer is AFI Europe, a leading owner of retail and office properties in Central and Eastern Europe controlled by Israeli billionaires Roni and Yehuda Naftali, which thus marks its largest deal on the local market.

The transaction will propel AFI Romania directly to second place among the largest shopping centre owners in Romania, after NEPI Rockcastle and surpassing Iulius Group of local entrepreneur Iulian Dascălu, according to Profit.ro.

MAS has also announced it entered an agreement to sell the enclosed mall Galleria Burgas in Bulgaria, estimated at EUR 125 million at fair value.

The developer expects the transaction in Romania to be completed by June 30, 2026. It is subject to receiving approvals from the Romanian Competition Council and the Romanian Foreign Direct Investment Commission.

The transaction value is EUR 281.8 million, including bank loans related to the properties estimated at EUR 84.5 million, the announcement also stated. The company will thus collect EUR 197.7 million in cash from the eight companies that own the six malls and two extensions of the same malls.

The six malls, with all their extensions, have a total area of ​​125,000 square meters GLA and have an accounting valuation of EUR 311 million.

The deal in Bulgaria is subject to receiving the approval of the Commission for Protection of Competition in Sofia and approval of the financing banks for the change of control of Galleria Burgas ead, which are expected to be received by 31 July 2026.

The sale of Balleria Burgas will be done at a value of EUR 122 million, including a EUR 73 million loan and EUR 53 million in cash, plus the working capital adjustment. 

The purchaser is Balkan Retail N.V., the holding company of Hyprop Investments Limited's ("Hyprop") Eastern European properties. Hyprop is a retail-focused REIT listed on the JSE and A2X.

iulian@romania-insider.com

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