April 30. 2025 17:50
WESTERN EUROPE
Welcome to the latest episode of the South African real estate podcast, Another Brick in the Wall!
In this episode, Michael and Alistair chat with Laurence Rapp who is the CEO of Vukile Property Fund and who chairs Castellana Properties, as well as Alfonso Brunet, the CEO of Castellana Properties. They have invested in Spain and recently expanded into Portugal and the autonomous region within it, Madeira.
Michael and Alistair were hosted by Vukile, a listed retail specialist landlord that owns 99.5% of the aforementioned Spanish group, Castellana Properties. Spain and Portugal 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 also acquired the high-performing Forum Madeira, a 100% let open-air shopping centre located in Funchal, the capital of the island of Madeira, off the northwest coast of Africa. The asset will be bought for €63.3m, funded primarily from existing cash reserves, at an initial net operating income yield of 9.5%.
Following seven years of growing its Spanish retail property portfolio from its South African base, Vukile made the entry into Portugal just over six months ago, acquiring three prime retail assets, swiftly followed by a fourth. Forum Madeira will become its fifth Portuguese shopping centre. Approximately two-thirds of Vukile’s assets and 60% of earnings are now offshore.
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. Vukile, via Castellana, is the fifth biggest retail landlord in Spain.
You can hear this episode here: https://iono.fm/e/1547553 and on Spotify: https://open.spotify.com/episode/6GuTADZp87nxO0UsRS1cUb.
Enjoy!
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