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Vukile Property buys 9 retail parks for €193M

Vukile Property, a South African real estate investment trust (REIT) associated with Morze family, acquired for €193M a portfolio of nine retail parks in Spain with a total lease area of 117,670 sqm.

The assets were sold by Redevco Iberian Ventures, a joint venture between Dutch Redevco and Ares Management, as Vukile closed the deal through its SOCIMI, Castellana Properties.

These new assets are taking Spain to the second real estate market of reference to Vukile, after South Africa, as well as the operational base for its next growth strategy in Western Europe.

South African investment trust specializes in retail parks management, with a long-term perspective and a conservative approach about financial management and statement.

Through Castellana, the REIT aims to grow in Spain. With the nine acquisitions, the assets outside South Africa represent 21% of the assets under the fund management.

The acquired portfolio includes retail parks integrated in its shopping centers and resorts. The parks included in the sale are Parque Oeste, in Alcorcón, Madrid (13.600 sqm with six retail boxes), and Parque Principado, near Oviedo (16.250 sqm with five retail boxes).

The almost rentable 90.000 m2 remaining are divided into parks such as: Mejostilla, in Cáceres (7.280 m2 with seven retail boxes); La Heredad, in Mérida (13.500 m2 with nine retail boxes); La Serena, in Villanueva de la Serena (12.400 m2 with nine retail boxes); Retail Park Motril, in the town of Granada (5.560 m2 with four retail boxes); Parque Comercial Kinépolis, in Granada (25.900 m2 with 32 leisure and retail boxes); Ciudad del Transporte, in Castellón (3.250 m2 with two retail boxes) and Marismas del Polvorín, in Huelva (20.000 m2 with nine retail boxes).

Of the €193M for the transaction, rising up to €198M including the acquisition costs, Vukile is financing €103M through its own capital. The remaining €94.8M will be financed to Castellana Properties by a pool of Banks: Santander, CaixaBank, BBVA and Bankia, among others.

Advising Redevco Iberian Ventures on the sale of the retail park portfolio were JLL and Dentons.  Vukile was advised by RPE, Grant Thornton, DokeiRE and Ashurst.

Redevco will continue to manage the nine shopping center for a transitory period of six months. During that time, Vukile will promote and launch the Castellana Proeperties structure as a profitable investment fund specialized in Spanish retail properties.

Laurence Rapp, CEO of Vukile property Fund, said that “With this acquisition, Vukile has secured a significant growth platform in one of the most compelling investment stories in the Eurozone.  We are very happy with the fundamentals of the deal and the investment value it signifies for Vukile. It creates a solid and significant base for future acquisitions.”

He also describes the Spanish property market as being transparent and offering depth, with one of the most attractive growth rates in Europe, a trend set to continue for a long-term.