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Key Points
- Vukile Property Fund's asset base grew to over $2.5 billion, driven by strategic expansion in Spain and Portugal and divestment from non-core assets.
- The €82 million ($90.6 million) profit from selling Lar España was reinvested into high-yield assets, boosting offshore earnings to 60% of total income.
- Vukile's growth strategy includes the acquisition of Valencia's Bonaire Shopping Centre, expanding its portfolio in Spain and Portugal with no new equity needed.
Vukile Property Fund Limited, the Johannesburg-listed REIT led by South African executive Laurence Rapp, has achieved a major milestone, growing its asset base to more than $2.5 billion. This growth was largely driven by an aggressive expansion in Spain and Portugal, as well as the company’s decision to divest from non-core assets.
One of the key highlights of this expansion was the €82 million ($88.7 million) profit from the sale of its stake in Lar España, which was immediately reinvested into high-yield assets, including the Bonaire Shopping Centre in Valencia. These moves have significantly bolstered Vukile’s offshore earnings, now accounting for 60 percent of the group’s total income.
Strategic expansion in Spain and Portugal
The Johannesburg-based property fund saw its assets grow from R44.24 billion ($2.24 billion) in 2024 to over R50 billion ($2.5 billion), putting it on track to meet its full-year goals. In its pre-close update for the full-year 2025, the company—listed on both the Johannesburg and Namibia stock exchanges—forecasts a 2-4 percent increase in funds from operations (FFO) per share and a 6 percent dividend hike.
Vukile expects similar growth in full-year 2026, with no need for new equity capital, highlighting confidence in its integrated portfolio's earnings power. Its growth is anchored in its Iberian portfolio, which now contributes two-thirds of total assets and 60 percent of group earnings. Through its 99.5 percent-owned Castellana Properties, the REIT expanded its Spanish and Portuguese footprint by nearly 60 percent over the year.
A standout was the €82 million ($90.6 million) gain from its exit in Lar España, redeployed into the acquisition of Valencia’s flagship Bonaire Shopping Centre, yielding over 8 percent. Vukile also entered Portugal with four strategic retail buys, deepening its scale across Europe’s most resilient consumer markets.
Positioned for sustainable value creation
Under the leadership of CEO Laurence Rapp, Vukile Property Fund has firmly established itself as a leading retail-focused REIT with a unique strategy that spans both South Africa and Southern Europe. Listed on the Johannesburg and Namibian stock exchanges, the group has built a portfolio valued at over R50 billion ($2.5 billion), anchored by prime, high-performing retail assets. Through its Madrid-listed subsidiary, Castellana Properties, Vukile now holds 60 percent of its assets in Spain, underscoring the success of its international expansion.
Vukile's €305 million ($337.52 million) acquisition of Bonaire Shopping Centre, the largest mall in Valencia, is its largest deal to date, significantly enhancing Castellana's portfolio. With several value-boosting initiatives already completed and a solid pipeline ahead, the REIT enters FY2026 in a strong financial position, with minimal near-term debt and no immediate need for new equity. Its presence in both South Africa's resilient retail market and Southern Europe's stable economies makes Vukile one of the most adaptable and diversified REITs on the continent.
