Vukile Concludes R6 Billion Deal for Valencia’s Biggest Shopping Mall

As South Africa and Europe strengthen their economic relationship with the SA-EU Summit taking place in Cape Town this week, Vukile Property Fund, one of the country’s leading real estate investment trusts (Reits), has announced its acquisition of the Bonaire Shopping Centre in Valencia, Spain, for €305 million (R6 billion).

This marks Vukile’s most recent investment in the Iberian Peninsula. The Bonaire Shopping Centre, recognized as the largest mall in Valencia, was acquired through Vukile’s subsidiary, Castellana Properties, in which it holds a 99.5% stake, from the Paris-based property giant Unibail-Rodamco-Westfield.

Vukile asserts that Bonaire is among the top 10 shopping centre assets in Spain, with the acquisition price of €305 million reflecting an appealing entry yield of roughly 7%.

“The acquisition faced delays due to severe flash flooding in the Valencia area in October 2024. During the centre’s restoration, Unibail-Rodamco-Westfield completely renovated the common areas and retail units of the ground floor, while numerous retailers took the chance to enhance their stores and introduce new concepts,” the Reit highlighted.

“After significant refurbishment of the ground floor and retail spaces, the mall reopened on 13 February 2025, welcoming record foot traffic,” it added.

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“We are delighted to have acquired this outstanding asset from Unibail-Rodamco-Westfield, further solidifying Castellana’s status as a key player in the Iberian retail property market,” stated Vukile CEO Laurence Rapp.

The deal is primarily financed through the €200 million proceeds from Castellana’s divestment of its stake in Lar España.

“This value-enhancing deal is our largest to date and propels our growth in Spain with a leading institutional-grade asset,” Rapp mentioned.

“We realized a substantial profit of around €80 million from the Lar España transaction, and the swift redeployment of those proceeds into such a high-quality asset with zero cash leakage showcases our team’s deal-making prowess,” he noted.

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According to Vukile, the Bonaire Shopping Centre serves as a vital retail hub in the sought-after Spanish coastal province, boasting an impressive 99% occupancy rate with top-performing tenants including Inditex brands like Zara, as well as Primark, JD Sports, H&M, Mango, and Fnac.

The centre, spanning 55,800 m² and part of a larger 135,200 m² retail complex, features leisure and dining areas and is connected to an Alcampo hypermarket. In conjunction with the Bonaire acquisition, Castellana secured an 18-month net operating income guarantee.

“For Vukile, this transaction enhances its portfolio in Spain. From having no presence in July 2017, after the Bonaire Shopping Centre acquisition, nearly two-thirds of Vukile’s assets will now be located offshore within the Iberian Peninsula, focusing on the high-growth, attractive markets of Spain and Portugal,” the group stated.

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