{"id":7773,"date":"2024-10-03T15:24:41","date_gmt":"2024-10-03T13:24:41","guid":{"rendered":"https:\/\/sareit.co.za\/?p=7773"},"modified":"2024-10-03T15:24:41","modified_gmt":"2024-10-03T13:24:41","slug":"vukile-continues-its-iberian-charge-with-lar-espana-disposal","status":"publish","type":"post","link":"https:\/\/muddev.co.za\/sareit\/vukile-continues-its-iberian-charge-with-lar-espana-disposal\/","title":{"rendered":"Vukile continues its Iberian charge with Lar Espa\u00f1a disposal"},"content":{"rendered":"

Vukile continues its Iberian charge while banking a significant profit of over R1.5 billion for shareholders with Lar Espa\u00f1a disposal<\/strong><\/p>\n

03 October 2024.<\/strong> Vukile Property Fund (JSE: VKE) confirmed its intention to accept an improved cash offer for its 28.8% stake in Lar Espa\u00f1a Real Estate following careful evaluation of its options. Vukile’s investment in Lar Espa\u00f1a, held through its 99.5%-owned Spanish subsidiary, Castellana Properties, has realised significant value for Vukile shareholders.<\/p>\n

The consortium involving Hines European Real Estate Partners III and Grupo Lar Inversiones Inmobiliarias, Lar Espa\u00f1a’s asset manager, has increased the offer from EUR8.10 per Lar Espa\u00f1a share to EUR8.30 per share for all shareholders following its negotiations with Vukile.<\/p>\n

The disposal will allow Vukile, via Castellana, to achieve an internal rate of return of approximately 45% p.a. since January 2022 in ZAR terms.\u00a0 This represents an investment return of almost three-times in under three years from the initial Lar Espa\u00f1a investment.<\/p>\n

Laurence Rapp, CEO of Vukile Property Fund<\/strong>, said: \u201cOur ability to identify mispriced assets, both listed and unlisted, and interpret market nuances through our on-the-ground asset management expertise, defined by profound knowledge of the property industry and retail specialisation, inform our capital allocation strategy. Our synthesis of corporate finance and deal-making skills, together with property asset management, underpins dexterity in underwriting retail assets.\u201d<\/em><\/p>\n

When Vukile invested in Lar Espa\u00f1a, it was trading at approximately a 48% discount to net asset value (NAV). Vukile quickly identified this investment as a tremendous opportunity because of its asset and market alignment. The investment provided strategic optionality that, in all instances, provided significant potential for capital appreciation while receiving attractive dividends. During Vukile\u2019s time as a significant Lar Espa\u00f1a shareholder, the share\u2019s discount to NAV reduced materially.<\/p>\n

While Lar Espa\u00f1a shares still trade at almost 19% discount to NAV based on the increased offer price, when viewed from the perspective of the yield on Lar Espa\u00f1a\u2019s assets, Vukile believes the negotiated offer price presents an opportunity to redeploy capital into other strategically aligned and financially accretive opportunities with potentially better yields at significantly lower operational and deal execution risk.<\/p>\n

While some in the market may have anticipated a counterbid, having considered all options, the complexity, cost and execution risk of doing so made this a less optimal solution. \u201cThis decision reflects Vukile’s disciplined approach to capital allocation and deal-making,\u201d <\/em>notes Rapp.<\/p>\n

The company remains committed to its growth strategy in Spain and the Iberian Peninsula, where it has established a significant presence and pipeline of opportunities. From a standing start seven years ago, Vukile has grown Castellana to become the fifth biggest retail property owner in Spain. It is set to become the third largest by the end of 2024 and is well on its way to growing the largest retail property portfolio across the Iberian Peninsula.<\/p>\n

Vukile\u2019s acceptance of the Lar Espa\u00f1a offer comes after it launched the natural expansion of its Spanish growth into Portugal with the pre-funded acquisition of three shopping centres, which closed earlier this week. The transaction takes Vukile\u2019s exposure to the Iberian Peninsula to 64% of its assets.<\/p>\n

Following its recent capital raise for several well-progressed deals that Vukile is evaluating, and given it has a significant pipeline of opportunities with a number under active consideration in both Spain and Portugal, Vukile is confident that the proceeds from the offer will be redeployed in line with its expansion strategy in these key markets.<\/p>\n

\u201cBy accepting the Lar Espa\u00f1a offer, Vukile is realising a substantial return for shareholders while maintaining its focus on strategic growth initiatives. Vukile is well-positioned to create further value for shareholders through disciplined investment and active asset management,\u201d<\/em> concludes Rapp.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Vukile continues its Iberian charge while banking a significant profit of over R1.5 billion for shareholders with Lar Espa\u00f1a disposal 03 October 2024. Vukile Property Fund (JSE: VKE) confirmed its intention to accept an improved cash offer for its 28.8% stake in Lar Espa\u00f1a Real Estate following careful evaluation of its options. Vukile’s investment in […]<\/p>\n","protected":false},"author":4,"featured_media":7772,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[9],"tags":[55,19,27],"class_list":["post-7773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-members-news","tag-property","tag-sareit","tag-vukile"],"featured_image_src":{"landsacpe":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2024\/10\/Laurence-Rapp-CEO-of-Vukile-Property-Fund.-sm-701x445.jpg",701,445,true],"list":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2024\/10\/Laurence-Rapp-CEO-of-Vukile-Property-Fund.-sm-463x348.jpg",463,348,true],"medium":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2024\/10\/Laurence-Rapp-CEO-of-Vukile-Property-Fund.-sm-270x300.jpg",270,300,true],"full":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2024\/10\/Laurence-Rapp-CEO-of-Vukile-Property-Fund.-sm.jpg",701,780,false]},"_links":{"self":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts\/7773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/comments?post=7773"}],"version-history":[{"count":0,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts\/7773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/media\/7772"}],"wp:attachment":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/media?parent=7773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/categories?post=7773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/tags?post=7773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}