Vukile has agreed to acquire a portfolio of four Spanish shopping centres for €460m. The deal is expected to increase the company's offshore exposure to above 40%. If approved, the transaction would increase the value of the portfolio in Castellana Properties, Vukile’s Spanish real estate investment trust subsidiary, from €390m to circa €870m. The transaction is expected to be concluded by the end of this month. The vendor is Unibail-Rodamco-Westfield.
The portfolio comprises the 43,423m² El Faro shopping centre in Badajoz, near Spain’s border with Portugal, the 24,789m² Bahia Sur shopping centre in Cadiz, the 17,906m² Los Arcos shopping centre in Seville, and the 35,220m² Vallsure shopping centre in Valladolid.
It would be funded by a combination of €257m in debt provided by European banks, €80m equity investment by a Morze-controlled vehicle, a €35m investment by Capricorn Capital and a €123m equity investment by Vukile.
Laurence Rapp, the chief executive of Vukile, said: “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’s offshore exposure is now 47% of assets, of which 43% are in Spain and 4% in the UK."
