Vukile raises R1.63bn, acquires new properties in Spain

18th July 2018

By: Anine Kilian

Contributing Editor Online

     

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JSE-listed Vukile Property Fund, which is expanding its presence in Spain, has raised about R1.63-billion through the issue of new shares.

Of the total, R1.38-billion was raised through an accelerated bookbuild process that was open to selected investors.

The remaining R250-million was raised by way of a placement with the Encha special purpose vehicle.

Vukile, meanwhile, on Wednesday said it also intends to acquire a controlling shareholding in a company that will own a portfolio of four shopping centres in Spain.

Vukile’s lead investment partner in Spain, Lee Morze, has created a separate investment property company, PropCo, to acquire the portfolio of properties from Unibail-Rodamco-Westfield for €460-million in a transformative and accretive deal that will boost Vukile’s offshore exposure to above 40%.

“This is an excellent quality portfolio; one of the best we have seen in the market so far. At a yield of 5.9%, it is attractive and accretive to Vukile, representing a cash-on-cash yield of 8.1% in its first year,” Vukile CEO Laurence Rapp said in a statement.

The acquisition is expected to be concluded by July 31.

Edited by Creamer Media Reporter

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