Vukile Property Fund, a prominent retail-focused real estate investment trust (REIT) listed on the Johannesburg Stock Exchange (JSE: VKE), has strategically expanded its European footprint through the acquisition of the Bonaire Shopping Centre in Spain. This transaction, valued at €305 million (approximately R6.1 billion), was executed via Vukile’s 99.5%-owned Spanish subsidiary, Castellana Properties (Vukile Property Fund).
Bonaire Shopping Centre, situated in Valencia—the third-largest city in Spain, stands as the region’s largest retail complex. The centre encompasses a gross lettable area of 55,800 square metres, housing 138 stores. It is seamlessly integrated with an Alcampo hypermarket, bringing the total property size to 78,000 square metres. The tenant mix includes prominent brands such as Zara, Primark, JD Sports, Mango, H&M, and Fnac, maintaining a long-term occupancy rate of 99% (Vukile Property Fund).
The acquisition process experienced a temporary delay due to severe flash flooding in the Valencia region in October 2024. Subsequently, Unibail-Rodamco-Westfield undertook comprehensive refurbishments of the ground floor’s common areas and retail units. Many retailers utilised this period to enhance their stores and introduce new concepts. The centre successfully reopened on 13 February 2025, recording unprecedented footfall, underscoring its prominence in the region (Vukile Property Fund).
Laurence Rapp, CEO of Vukile Property Fund, expressed enthusiasm about the acquisition, stating that securing such an exceptional asset from Unibail-Rodamco-Westfield reinforces Castellana’s position as a leading entity in the Iberian retail property market. He highlighted that this transaction, the company’s largest by value to date, aligns with their growth strategy in Spain, adding a market-leading institutional-grade asset to their portfolio (Vukile Property Fund).
The funding for this acquisition was sourced from the €200 million proceeds garnered from the sale of Castellana’s stake in Lar España. This strategic divestment yielded a substantial profit of approximately €80 million, which was promptly reinvested into the high-quality Bonaire asset, exemplifying the company’s adept capital allocation and deal-making proficiency (Vukile Property Fund).
This acquisition signifies a pivotal enhancement of Vukile’s Spanish investments. From an initial position in July 2017, the company has expanded its portfolio, with approximately two-thirds of its assets now located in the Iberian Peninsula, encompassing the high-growth markets of Portugal and Spain (Vukile Property Fund).
The Bonaire Shopping Centre is part of a substantial retail node comprising 135,200 square metres and 151 stores, including notable retailers such as Leroy Merlin, Decathlon, and JYSK. Its strategic location offers exceptional connectivity to local and international markets, being in proximity to Spain’s second-largest port and the fifth-largest in Europe, as well as the Valencia Airport. The centre’s design includes a top-floor leisure, food, and beverage area, refurbished in 2016, enhancing its appeal as a comprehensive shopping and leisure destination (Vukile Property Fund).
This strategic acquisition not only bolsters Vukile’s portfolio but also reinforces its commitment to sustainable growth and value creation in the European retail property sector.
