Property giant Vukile snaps up more Spanish assets

By Tom Woods Friday, 27 July 2018 10:04 0
SHOPPING AROUND: Vukile already owns the East Rand Mall in South Africa. SHOPPING AROUND: Vukile already owns the East Rand Mall in South Africa. @EastRandMall/Twitter

VUKILE, the JSE-listed property fund, is set to double its retail property investments in Spain after agreeing to acquire a portfolio of four shopping centres for €460 million.

The company described the transaction as transformative, adding that it would boost its offshore exposure to above 40 per cent.

If approved, the takeover would increase the value of the portfolio in Castellana Properties, Vukile’s 98 per cent owned Spanish real estate subsidiary, from €390 million to €870 million.

The four shopping centres are located in Badajoz, Cadiz, Seville and Valladolid.

It is a business deal that would be funded by a combination of loans from European banks; €80 million of equity investment from Morze; a €35 million investment by Capricorn Capital; and €123 million of equity investment by Vukile.

Chief Executive of Vukile, Laurence Rapp, said he was thrilled to secure the deal that was fully aligned to his business strategy.

“This is an excellent quality portfolio, one of the best we have seen in the market so far,” he said.

“Vukile’s offshore exposure is now 47 per cent of assets, of which 43 per cent are in Spain and 4 per cent in the UK.”

The takeover is expected to be finalised by the end of this month.

Comments (0)

There are no comments posted here yet

Leave your comments

Posting comment as a guest.
0 Characters
Attachments (0 / 3)
Share Your Location

Poll of the Week

Do you think it’s important to speak Spanish, living or holidaying in Spain?

New online edition graphic