Property group Vukile’s latest capital raise felt like the stirrings of a bygone phase: setting out to raise R400m from investors, it raked in R700m in an oversubscribed bookbuild. Property stocks were among the JSE’s worst performers in 2018, but will 2019 be different? Business Day asked Vukile CEO Laurence Rapp what they’re using the money for ... We’ve been very active in Spain and we’ve built that portfolio now to more than €900m. This money ... is not for new acquisitions, it’s to expand the existing centres that we have. Equity is, however, expensive capital, it’s perpetual. Is it worth it? Absolutely. You’ve got to run a property company for the long term. So it’s not a short-term earnings boost. It is accretive, but this is about making the assets even more dominant and enhancing the tenant mix. When we see the long term benefits … then it’s absolutely appropriate in our view to fund it with equity. People are understandably sceptical about SA companies and their offshore f...

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