Vukile’s Spanish assets top €1bn, and it gets a credit ratings upgrade

Posted On Friday, 02 August 2019 14:25 Published by
Rate this item
(0 votes)

Vukile Property Fund today announced that its listed Spanish subsidiary, Castellana Properties SOCIMI SA, has acquired the high-quality 30,000sqm Puerta Europa shopping centre in Algeciras, Cadiz, Spain.

 -LAURENCE-RAPP-VUKILE-

Laurence Rapp, CEO of Vukile Property Fund, says, “This accretive acquisition takes our Spanish assets over €1bn. Puerta Europa is a dominant, modern shopping centre distinguished by impressive sales ratios and low average rentals relative to the market, and we see exciting potential to grow its income streams.”

-PUERTA-EUROPA-1-

Puerta Europa offers two floors of shopping with 97 brands and a dedicated food and leisure area. It is anchored by a newly-refurbished Mercadona, Spain’s leading supermarket group, with a fashion mix led by a 4,000sqm Primark, a new flagship Zara of 3,000sqm and a recently revamped Lefties store which is part of the Inditex Group. It also features a 10-screen Yelmo Premium cinema complex, ensuring Puerta Europa is on-trend with the movement of growing leisure and entertainment offerings at shopping centres.

-PUERTA-EUROPA-2-

Algeciras is home to the second-largest port in Spain and the seventh busiest container port in Europe. Besides drawing from its 240,000-strong local shopper market, Puerta Europa also attracts customers from nearby Gibraltar. The region continues to benefit from strong and growing tourism and also attracts shoppers coming from North Africa via ferry.

-PUERATA-EUROPA-3-

This is Castellana’s second investment in the Cadiz region and, with its Bahia Sur shopping centre in San Fernando, the acquisition secures greater critical mass for it in the province, which is expected to benefit from further northern European migration in the years ahead.

-PUERATA-EUROPA-4-

The acquisition will be 40% funded by debt with Vukile having provided the balance of the equity.

Additionally, affirming Vukile’s strategic and financial management strength, GCR Ratings announced it has upgraded the national scale Issuer ratings for Vukile to AA-(ZA) and A1+(ZA) for the long and short term respectively, with a stable outlook.

The Spanish acquisition and credit rating upgrade follow Vukile’s R512m acquisition of Mdantsane Mall in the Eastern Cape, which extends its geographical footprint and its foothold in SA’s township retail market.

Vukile is a leading South African retail REIT with R35bn of property assets of which 50% are offshore, with 47% in Spain through Castellana, and 50% in Southern Africa.

Last modified on Friday, 02 August 2019 14:55

Most Popular

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Precautions, planning and preparation - the real estate agent's guide to weathering the Covid19 storm

Mar 16, 2020
Corona
With the Corona Virus now in SA and beginning to cause widespread panic, we are not only…

Please publish modules in offcanvas position.