Vukile says ¡Hola to Madrid bourse


Vukile says ¡Hola to Madrid bourse

Published Date: 2018-07-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

Vukile says ¡Hola to Madrid bourse

Subsidiary Castellana Properties listed on the junior market of Spain's stock exchange by way of introduction

Vukile Property Fund has listed Spanish subsidiary Castellana Properties on the Spanish Stock Exchange's junior bourse, Mercado Alternativo Bursatil, by way of introduction.

Listing by way of introduction is seen as an efficient way of floating on a market as it dispenses with the time and money involved in an initial public offering. Castellana's shares were listed at €6 each, giving the company a market capitalisation of €204 million. Vukile said the listing ensured that Castellana complies with applicable Spanish tax legislation in order for it to maintain its status as a real estate investment trust (REIT).

Castellana buys, manages and leases real estate assets, main shopping centres and other retail assets in Spain. On listing, its portfolio consisted of 15 properties with a gross asset value of €391 million and a gross leasable area (GLA) of 197 132m2. Vacancies were at 3.3%. The Castellana portfolio comprised 93.4% retail assets and 94% of its income was derived from national or international tenants. Its loan to value sits at about 48%.

Last week Vukile said it was subscribing for 66% of the shares in Morzal Properties Iberia for €152 million. Morzal is buying a portfolio of four shopping centres spread across Spain. Castellana was precluded from being party to the deal due to its pending listing. With that out of the way, Vukile plans to offer 100% of its stake in Morzal to Castellana at €6 per share, which represents Morzal's acquisition cost. The transaction, which will be offered on a shares-for-shares basis, will be subject to Castellana's own board corporate governance and it's under no obligation to go ahead with it.

Vukile's shares added 0.8% to R19.25 yesterday. Castellana closed 35 euro cents higher at €6.35.

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