Vukile’s potential acquisition of a shopping centre in Valencia, Spain, that was delayed due to flash floods last year, is back under discussion.
The JSE-listed group, which already owns properties in Spain through Madrid-listed subsidiary Castellana, delayed the purchase of the Bonaire shopping centre from Unibail-Rodamco-Westfield (URW) after its flooding in November.
The centre is the largest in Spain’s Valencia province and URW is making progress in its reopening.
“The exclusivity agreement between URW and Castellana is still in force. Vukile will assess the property and the impact of the flooding to determine the best course of action,” the retail landlord said in a Sens announcement.
During the release of its half-year results to end-September, Vukile CEO Laurence Rapp said: “Vukile’s businesses in SA and Spain are intentionally structured for seamless success, driving the strategic and operational progress that we’re pleased to report.”
The company’s Spanish investments have solidified Castellana’s position as a market leader, leveraging the country’s status as a European growth hub.
In its interim results, the group reported that the Spanish portfolio remained fully leased with 95% of the space occupied by top-tier international and national tenants. The portfolio saw a like-for-like rental growth of 2.1% and positive rental reversions of 45.5%.
In September, the Reit marked its entry into Portugal by acquiring a high quality portfolio of three shopping centres in Lisbon and Porto, leased to top-tier tenants, for €176.5m (R3.4bn). The deal is expected to yield cash-on-cash returns exceeding 10% in euro terms.
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