Vukile sells shares to grow Spanish portfolio


Vukile sells shares to grow Spanish portfolio

Published Date: 2019-04-04 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Vukile sells shares to grow Spanish portfolio

The real estate investment trust said proceeds of its R700 million book build would be used for opportunities in Spain.

Vukile Property Fund has issued new shares worth R700 million as it raises funds to grow its Spanish property portfolio.

The real estate investment trust (REIT) had planned to raise R400 million in an accelerated book build with select investors but raised the amount due to strong demand. It said the proceeds would be deployed to fund asset management opportunities in the portfolio held by Spanish subsidiary Castellana Properties Socimi.

The more than 35-million shares were issued at R19.85 each. Last July, the group raised R1.6 billion in a book build to buy a portfolio of four Spanish shopping centres.

Castellana buys, manages and leases real estate assets, shopping centres and other retail assets in Spain. Vukile listed it on the Spanish Stock Exchange's junior bourse, Mercado Alternativo Bursatil, last July. 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%.

Vukile's shares declined by 1.1% to R20.02 yesterday.

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