Vukile eyes chance to dominate Spanish market

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US private equity funds have to return capital and sell retail assets, providing mall owner with a gap to grow in European market

US private equity funds have to return capital and sell retail assets, providing mall owner with a gap to grow in the European marketVukile’s flagship Spanish shopping centre, the El Faro centre in Badajoz. Picture: SUPPLIED

Vukile now holds 72.2% of Castellana Properties, a Madrid-listed company that owns €916.5m worth of commercial property and is the ninth largest real estate investment trust in that country. Its asset base tripled in value from €308m during the financial year to March 2019, through the acquisition of five shopping centres. The group aims to increase its Spanish asset base to €1.5bn in its 2020 financial year.

Vukile said it supports Gemgrow’s plans to merge with its parent company, Arrowhead Properties, and that the deal will “make for an easier exit due to a relatively smaller percentage shareholding, greater scale and liquidity”.7.5% of Gemgrow’s A shares and 28% of its B shares, giving it a 25.3% voting interest.Meanwhile, it said while it has no concerns about Atlantic Leaf’s business and earnings outlook, it appears that the landlord will be “difficult to scale”.

 

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