1 week Ago By Terri-Ann Brouwers
Vukile Property Fund has expanded its European footprint with the €63.3 million (around R1.38 billion) – a fully let, high-performing retail centre in Funchal, Portugal.
Funchal is the capital of Madeira and the group’s latest deal – done via its Madrid-based subsidiary Castellana Properties – is Vukile’s fifth asset in Portugal and further strengthens the real estate investment trust’s (Reit) offshore portfolio. Read: Forum Madeira was acquired at a net operating income yield of 9.5% and is being financed primarily through existing cash resources, according to the JSE-listed group.
“Successfully securing this strategic asset in a particularly high-growth region further reinforces Vukile’s track record of acquisition agility and strengthens our leading portfolio across the European economic powerhouses of Spain and Portugal,” said Vukile CEO Laurence Rapp. Forum Madeira spans more than 21 000 square metres of gross lettable area across three levels. The open-air mall is anchored by Inditex Group brands, offering the island’s only full suite of these stores, alongside a Pingo Doce supermarket and Cinema NOS, the top cinema destination in Madeira.
Read: “The centre benefits from strong local and tourist demand, drawing from a catchment of over 250 000 residents and 2.3 million annual visitors. Its location in western Funchal, a fast-growing residential and hospitality area, further supports its performance,” the Reit pointed out.
The group noted that the acquisition supports its ongoing strategy to build a high-performing Iberian portfolio, targeting assets with stable cash flows and long-term growth prospects. For Forum Madeira, the company plans to optimise its tenant mix and introduce new brands to unlock additional value. “Having grown our Iberian portfolio vastly over the past year, this acquisition marks a shift in our focus to crystalising plans for optimisation and deepening value within the portfolio,” concluded Rapp.
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