Vukile’s flagship Spanish shopping centre, the 43,423m² El Faro centre in Badajoz, Spain. Picture: SUPPLIED .
Vukile’s flagship Spanish shopping centre, the 43,423m² El Faro centre in Badajoz, Spain. Picture: SUPPLIED .

Vukile Property Fund has increased the value of its share sale, which is aimed at funding investments in Spain, to R700m because of “strong demand”.

The property group said earlier on Wednesday that it wanted to raise R400m by issuing new equity.

“The proceeds of the capital raise are to be deployed to fund asset management opportunities within the portfolio held via Vukile's Spanish subsidiary, Castellana Properties Socimi,” it said.

Vukile said in its initial statement that the book-build was open with immediate effect. It could close it at any time and increase the size of the equity raise “subject to demand”.

Vukile is on track to build a portfolio valued at €1.5bn in Spain, after which time it plans to separately list that business. The group’s property portfolio in the European country is valued at more than €900m.

It first invested in Spain in July 2017, when it bought a portfolio of nine newly built retail parks via its 98.3% holding in Castellana Properties Socimi for €193m.

Vukile's shares were 1.4% down at R19.95 on Wednesday afternoon.

hedleyn@businesslive.co.za