But it said growth across all sectors of the real estate market remained subdued, with the exception of the best located and tenanted properties, which was where the majority of investors had sought refuge last year.

"Our argument for investing in European real estate remains as strong as ever," MAS said in a statement. "We believe that now is a most opportune time to be building a portfolio of well-located property investment."

The company, which was created five years ago by South African investors keen on expanding their holdings in Europe, owns a portfolio of properties in the UK, Germany and Switzerland.

In the period under review, gross rental income increased 82%, from €2.2m to €4.1m.

Downward adjustments of €1.2m in the fair value of its properties as a result of poor market conditions in especially the UK, and exchange differences of €884,000, caused the company to report a total comprehensive loss for the year of €1.1m.

MAS MD Lukas Nakos said it was company policy not to hedge its holdings in sterling, Swiss francs and euros. The strengthening of the euro reduced its net asset value per share, which now stands at 96.9 euro cents from a restated 98.5c last year.

Subject to all necessary approvals, MAS will migrate to the main board of the JSE in the second half of the year.

Mr Nakos said the move would enable MAS to secure greater capital flows so that it could take advantage of the high-quality but distressed properties coming on to the market. "It will also enable us to establish a wider investor base and achieve greater liquidity for the share."

Source: BD