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Key Points
- Vukile’s Castellana Properties finalized a $332 million Valencia’s largest mall deal, expanding its dominant retail portfolio in Spain with a 7 percent entry yield.
- Partly funded by Castellana’s Lar España sale, the acquisition aligns with its strategy to invest in prime, high-performing retail assets in key markets.
- With 99% occupancy and top tenants like Inditex, Primark, and H&M, Bonaire Shopping Centre cements Castellana’s dominance in Iberian retail real estate.
Vukile Property Fund Limited, a Johannesburg-based property fund led by South African business executive, Laurence Rapp, has finalized the acquisition of Bonaire Shopping Centre, the largest mall in Spain’s Valencia province, for $332 million.
The €305 million ($332 million) deal, executed through Vukile’s 99.5 percent-owned Spanish subsidiary Castellana Properties, marks the company’s biggest transaction to date. Bonaire Shopping Centre, a top 10 retail asset in Spain, was acquired from multinational retail REIT Unibail-Rodamco-Westfield at an entry yield of approximately 7 percent.
Castellana expands Iberian portfolio with $332 million deal
Castellana Properties, Vukile’s majority-owned subsidiary, has strengthened its foothold in Spain’s retail sector with a $332 million acquisition of Bonaire Shopping Centre, Valencia’s largest mall. The deal, partly funded by €200 million ($217.98 million) from its profitable Lar España divestment, aligns with Castellana’s focus on prime, high-performing retail assets.
Castellana Properties, will strengthen its foothold in Spain’s retail market with the $332-million acquisition of Bonaire Shopping Centre, the largest mall in Valencia. The deal, still subject to regulatory approval, will make Bonaire the flagship property in Castellana’s portfolio. It is partly funded by €200 million ($217.98 million) from Castellana’s profitable divestment of Lar España, aligning with its focus on prime, high-performing retail assets.
Vukile CEO Laurence Rapp described the acquisition as a milestone for Castellana. “We are thrilled to have secured this exceptional asset from Unibail-Rodamco-Westfield. This is our largest deal by value to date and a major step forward in our growth in Spain with a top-tier, institutional-grade asset.”
Vukile’s global retail expansion continues
Under Laurence Rapp, Vukile Property Fund, listed on the Johannesburg and Namibia stock exchanges, has built a strong retail REIT presence in South Africa and Spain. Focused on dominant retail assets, it manages a R40 billion ($2.11 billion) portfolio, with 59 percent of its assets in Spain through its Madrid-listed subsidiary, Castellana Properties.
Its largest deal to date is the acquisition of Bonaire Shopping Centre, the biggest mall in Valencia. The property, purchased from Unibail-Rodamco-Westfield at a 7 percent entry yield, adds significant value to Castellana’s retail portfolio. With recent expansions into Portugal, Vukile is further strengthening its position in the Iberian market.
