<\/p>\n
Vukile Property Fund has closed its first three shopping centre acquisitions in Italy for a total purchase price of \u20ac115 million (around R2.17 billion), group CEO Laurence Rapp confirmed in a FY2026 results media presentation on Wednesday.<\/p>\n
While the trio of centres represent its debut in the Italian market, Rapp confidently declared: \u201cWe\u2019re not going into Italy as newbies\u201d.<\/p>\n
His comments come as some analysts have said Vukile will find it tougher to expand in this new market, compared to its huge success in entering and growing in Spain over the last decade.<\/p>\n
Read\/listen:
Vukile raises R2.8bn on JSE as it enters Italian market
Italy will be a tougher market than Spain for Vukile \u2013 Elston<\/p>\n
Rapp said the first three deals in Italy were finalised and closed on Monday.<\/p>\n
He explained that Vukile\u2019s strategic purchase of a 35% stake in leading Pan-European property services and retail asset asset management group, Pradera, gives it greater insights into the broader European market.<\/p>\n
\n\u201cWe believe Pradera\u2019s track record in Italy de-risks Vukile\u2019s first foray into the Italian market, giving us confidence to move into the country,\u201d he said.<\/p>\n<\/blockquote>\n
Rapp added that the move will also see the establishment of Vukile\u2019s new Italian holding company, Esperia Properties as a platform for further expansion in the country, which is Europe\u2019s fourth largest economy. Spain comes in as Europe\u2019s fifth biggest economy (when Russia is excluded).<\/p>\n
While the JSE-listed retail property giant will own the assets, the day-to-day running of the portfolio will be managed by Pradera. During FY2026, Vukile acquired the stake in Pradera.<\/p>\n
The transaction of the three shopping centres \u2013\u00a0<\/span>Le Due Valli<\/span> in Turin, Le Centurie in Padua and Quarto Nuovo in Naples \u2013 is priced at \u20ac115 million million, for a net operating income of around \u20ac11.5 million in year one and a net initial yield of 10%.<\/p>\n
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\u201cVukile is replicating our proven Castellana playbook to build Esperia in Italy, where we see the potential to acquire a portfolio in excess of \u20ac500 million over time,\u201d said Rapp, following the release of Vukile\u2019s annual results.<\/p>\n
Read: Vukile\u2019s South African property valuations surge over 12%<\/p>\n
Castellana Properties is the group\u2019s Spanish subsidiary, which is also leading its investment and expansion into Portugal.<\/p>\n
\nWith post-year-end acquisitions, Vukile now holds a total property portfolio of around R64 billion in assets, with close to 70% of its assets in Europe.<\/p>\n<\/blockquote>\n
Its R19.5bn South African portfolio of township, rural, urban and commuter malls serve some of the country\u2019s most compelling consumer markets.<\/p>\n
Transaction details<\/strong><\/p>\n
The latest acquisitions in Italy has been financed, in part, by its recent R2.8 billion equity capital raise.<\/p>\n
The equity raise comprised of a non-pre-emptive placing of around 123 million new ordinary shares in the company, and was significantly oversubscribed, according to Rapp.<\/p>\n
He said the expansion into Italy, after Spain and Portugal, has been received well by shareholders.<\/p>\n
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\u201cWe did drop enough hints that Italy was next on our list, so nobody was surprised. When we did mention the Italian move, during the capital raise, we had only positive feedback from investors.\u201d<\/p>\n
Investment case for Italy<\/strong><\/p>\n
Vukile said Italy offers a compelling combination of improving macro-fundamentals and a resilient consumer, noting that Italian households carry exceptionally high net wealth and low debt, with a consumer culture that prioritises discretionary spend on fashion, food and beverage, and experiential retail.<\/p>\n
According to the group, Italy has the lowest e-commerce penetration in Europe, at just 10%, and ranks second for cumulative tenant sales growth since 2019.<\/p>\n
Read: Hammerson doubles down on retail experience to counter e-commerce disruptions<\/p>\n
\u201cThese dynamics translate into an attractive investment case. Building off our experience and track record in Spain and Portugal, we see a clear opportunity to build specialist platform for institutional, permanent capital and unlock income growth through active management, strong tenant partnerships and a lower cost of capital,\u201d said Rapp.<\/p>\n
\nSince 2019, Italy\u2019s GDP has grown roughly 1.2% per annum, outperforming the UK, and Germany. The country also has high household net wealth and low private debt, which underpins consumer spending.<\/p>\n<\/blockquote>\n
As its beds down its entry to the Italian shopping centre market, Vukile\u2019s capital allocation focus will remain on accretive opportunities in its core markets of South Africa, Spain, Portugal and Italy.<\/p>\n
Watch\/listen:\u00a0Dealmaker deluxe: Vukile\u2019s Laurence Rapp sees more deals coming in Spain and SA<\/p>\n<\/p><\/div>\n
#Italy #newbies #Vukile #boss #Laurence #Rapp<\/p>\n","protected":false},"excerpt":{"rendered":"
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