July 30 2025 09:20
Laurence Rapp, Vukile Property Fund CEO
Vukile Property Fund (JSE: VKE) has announced that GCR Ratings has upgraded its national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook.
The upgrade reflects GCR’s confidence in Vukile’s core credit quality, bolstered by consistent property outperformance, strategic international diversification and sound capital management, the group said.
Vukile is a specialist retail REIT with a portfolio spanning three countries – South Africa as well as Spain and most recently Portugal through its 99.6% held Spanish subsidiary Castellana Properties, supported by blue-chip tenants and underpinned by strong operating fundamentals, it said.
GCR said: “Vukile’s property performance remains a key rating strength,” noting that its portfolio of non-metropolitan, convenience-oriented shopping centres and retail parks, which are primarily anchored by grocery and essential services tenants “has tended to outperform the overall property sector.”
“Vukile’s upgraded credit rating is a strong endorsement of our disciplined approach to capital, our high-quality assets and our long-term investment strategy. Our consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive,” said Laurence Rapp, CEO of Vukile Property Fund.
At its March 2025 year end after expanding into Portugal, Vukile’s Iberian portfolio had grown to 65% of asset value, furthering the strategic benefits of its geographic diversification and exposure to multiple macroeconomic environments.
GCR said Vukile’s “strong access to debt capital” and “sound liquidity profile”, underscored its “proactive balance sheet management”. The ratings agency said the company demonstrated an ability to access capital and had stable financial profile.
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