Vukile makes strides in Spain with milestone property deal
Reit makes its mark in western Europe with its acquisition of a portfolio of newly built retail parks
Vukile Property Fund has become the only South African-based real estate company with significant exposure to the Spanish economy after a landmark deal worth nearly R3bn. The group has acquired a portfolio of nine newly built retail parks across Spain via its 98.3% holding in Castellana Properties Socimi. The €193m off-market transaction increases Vukile’s diversification, boosts its international exposure to about 21% of total property assets and grows its Spanish portfolio to 11 properties. "The transaction has given Vukile immediate scale in Spain. Vukile now offers the most focused exposure to Spanish property available in the South African real estate investment trust [Reit] market," said Vukile CEO Laurence Rapp. Spain’s economy has been growing strongly relative to its European peers over the past few years. GDP growth has exceeded 3% a year over the past three years. An increase in disposable income is driving the economic recovery. The acquisition represents a 6.2% pregeare...
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