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Vukile, which is a majority 99.5% shareholder in Castellana announced the deal recently, following through on its goal of expanding in the Iberia region of Europe. The SA real estate investment trust (Reit) first announced plans for expansion into Portugal during the release of its annual results in June.
JSE-listed retail landlord Vukile Property Fund’s Spanish-based subsidiary Castellana Properties SOCIMI has acquired a portfolio of three shopping malls in neighbouring Portugal for €176.5 million (around R3.5 billion), together with RMB Investments and Advisory Proprietary Limited (RMBIA).
Vukile, which is a majority 99.5% shareholder in Castellana announced the deal recently, following through on its goal of expanding in the Iberia region of Europe. The SA real estate investment trust (Reit) first announced plans for expansion into Portugal during the release of its annual results in June.
Vukile said that Castellana has concluded a share purchase agreement (SPA) with Suitable World Unipessoal Lda – a Portuguese company ultimately owned by Harbert European Real Estate Fund – which would see its Spanish subsidiary acquiring the high-quality, blue-chip tenanted shopping center portfolio, comprising three assets located in Portugal.
Harbert European Real Estate Fund is sponsored by Harbert Management Corporation, collectively regarded as “the seller”. The seller will sell the entire issued share capital of each of the three property-owning companies – namely, RioSul Centro Comercial S.A., Loureshopping – Centro Comercial, S.A; and, 8ª Avenida – Centro Comercial, S.A – to Castellana.
Eighty percent of the shares in the Newco will be held by Castellana and 20% of the shares in Newco will be held by RMB Investments and Advisory Proprietary Limited, the SA Reit added.
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Rio Sul and Loures shopping centers are located in Portugal’s capital Lisbon, while 8ª Avenida is in Porto. RMBIA is a company within the South African JSE-listed banking giant, the FirstRand group. The aggregate purchase consideration for the properties is EUR 176 500 000 [net of acquisition costs of EUR 4 400 000) and will be settled by Newco in cash, said Vukile.
