April 15 2025 21:10
WESTERN EUROPE
Welcome to the latest episode of the African real estate podcast, Another Brick in the Wall!
In this episode, Michael and Alistair discuss their recent visit to Spain and Portugal. They were hosted by Vukile Property Fund, a listed retail specialist landlord that owns 99.5% of Spanish group, Castellana Properties SOCIMI. Through Castellana, Vukile has invested in the Iberian Peninsula. Both countries are enjoying strong economic periods, buoyed by investment and infrastructure projects as well as tourism.
Vukile recently acquired Bonaire Shopping Centre in Spain for R6bn, making it the largest asset across South Africa, Spain and Portugal. It bought the asset from Unibail-Rodamco-Westfield, buying the property “off-market”. It’s believed there were rival offers from Lar España Real Estate SOCIMI and Lighthouse Properties plc. Lighthouse was created by South Africans and is also listed on the JSE.
Vukile part funded the €305m transaction through €200m that was acquired when Castellana’s sold its stake in Lar España last year. RMB helped Vukile with the deal. The deal takes the group’s offshore exposure to more than 60%. Vukile’s management has said the expansion opportunities have been more attractive in Iberia than in SA in recent years. The diversification across Europe and South Africa mitigates risk according to management. The deal makes Vukile, via Castellana, the fifth biggest retail landlord in Spain.
Independent listed property analyst Keillen Ndlovu said Vukile had paced its investments Spain and Portugal.
“The deals have been well-timed. There’s good potential upside in rents and valuations, driven by a strong operating environment. They will also reposition and improve the tenant mix for some of the assets which will create more returns,” he said.
Michael and Alistair saw numerous shopping malls and enjoyed paella, wine and a mix of beers on their trip.
You can hear this episode here: and on https://iono.fm/e/1545276 Spotify: https://open.spotify.com/episode/4KZMHD8zG5mdH8jVxuggCb.
Another Brick in the Wall is proudly sponsored by Liberty Two Degrees and is produced by Fine Music Radio for Classic Business.
alistair@propertyflash.co.za
