Cash-flush Vukile eyes acquisitions after R5.2bn Spanish retail parks sale

Retail-focused real estate investment trust (Reit) Vukile Property Fund has executed a significant pivot in its European strategy, offloading a portfolio of Spanish retail parks for €279 million (approximately R5.2 billion) to fund a fresh wave of high-growth acquisitions in Spain.

On Monday, it announced the purchase of a majority stake in Berceo Shopping Centre in the city of Logrono, La Rioja, Spain, for €108 million, which follows hot on the heels of the sale of its retail parks in the country that was announced last week. The deals were done via its 99.7%-owned Spanish subsidiary, Castellana Properties.

Read: Vukile buys 35% of global retail platform Pradera

Cash flush from the retail parks sale, Vukile and Castellana executive said during a briefing on Tuesday morning, that two further deals are in the immediate pipeline in Spain. However, the group is also set to secured a new shopping centre deal in SA valued just below R500 million.

Vukile share price 

Vukile said the move marks a strategic shift from the retail park sector, which served as Vukile’s entry point into Spain in 2017, toward prime, dominant shopping centres where development is constrained, and demand remains high.

The milestone sale of the Spanish retail park portfolio to Ares Management Corporate reflects a disposal yield of 7.1% and a 13% uplift in the portfolio’s net asset value under the ownership of Castellana, which is driving Vukile’s expansion in the Iberian Peninsula currently.

Castellana will retain a presence at these sites through a new five-year agreement to provide asset and property management services for Ares, starting from the disposal date of 1 April 2026.

Vukile group CEO Laurence Rapp said the capital rotation is a response to better-yielding growth potential in the shopping centre segment.

As a first step, Castellana has agreed to acquire the Berceo Shopping Centre at a 7% yield.

The acquisition of Berceo highlights Vukile’s focus on dominant assets:

•  Dominance and footprint: Berceo is the leading mall in its region with virtually no direct competition, serving a high-GDP catchment area.
• Premier anchors: The 49 416m² centre (of which Castellana will own 34 416m²) is anchored by major international brands including Zara, Primark, and MediaMarkt, with the remainder occupied by a Carrefour hypermarket.
• Value-add strategy: Castellana plans to enhance the centre’s food, beverage, and leisure components to drive further growth.

A European retail specialist

The retail park sale and cash from a capital raise in October 2025 fully fund this “capital recycling” strategy.

It follows a similar successful rotation in 2024, when Vukile sold its stake in Lar España to acquire the Bonaire Shopping Centre in Valencia.

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With approximately two-thirds of its R54 billion in assets now located in Spain and Portugal, Vukile is increasingly positioning itself as a specialist European retail property player.

While development of new shopping centres in Spain remains highly restricted, Vukile intends to leverage its “on-the-ground” expertise to unlock value in existing prime assets.

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