Vukile raises R1.5bn in bookbuild

Vukile Property Fund has successfully raised R1.5bn in an accelerated bookbuild, it said on Tuesday.

Vukile on Monday initially announced the equity raise of about 5% of the company’s current market capitalisation, but after strong demand it elected to increase the size of the equity raise and placed about 7.7% of its shares.

The bookbuild shares were placed at R17 per share, representing a 4.60% and 4.63% discount to the pre-launch Vukile closing share price and 10-day volume-weighted average price (VWAP) on Monday September 9.

Investec was the sole bookrunner. Trading of the bookbuild shares is expected to commence on September 13.

The proceeds from the equity raise would provide Vukile with the financial agility necessary to execute on the opportunities presented by its value-accretive pipeline across both SA and Europe, it said.

On Monday the group announced it had acquired a retail portfolio in Portugal valued at €176.5m (R3.5bn)

The acquisition, made through its 99.5% held subsidiary Castellana Properties, “marks a strategic move to expand its footprint in the country”, the company said

The portfolio comprised three dominant shopping centres located in Lisbon and Porto, with a total gross lettable area of 74,083m². The centres — RioSul, Loures and 8ª Avenida — are well-positioned in their catchment areas, with strong footfall and sales ratios, presenting opportunities for growth in net operating income, Vukile said.

mackenziej@arena.africa