Vukile buys four malls from Unibail-Rodamco30 July 2018
It is to €489 million and transfer Castellana Properties to its subsidiary after its IPO
The South African Vukile Property Fund has reached an agreement to acquire four medium-sized shopping malls from Unibail-Rodamco: Bahía Sur in San Fernando (Cadiz), El Faro in Badajoz, Los Arcos in Seville and Vallsur in Valladolid.
Before concluding the deal, under which it will pay €489 million for the four assets, Vukile will acquire 66% of Morzal Property Iberia for a total of €152 million. Following the IPO of Castellana Properties, the Spanish subsidiary of Vukile, the fund plans to transfer 100% of the capital of Morzal at a price of €6 per share through a share swap.
Debt and partners
The initial purchaser of the four malls is Morzal, a subsidiary of the Luxembourg company Morze European Real Estate Ventures. Morzal will partially finance the acquisition by debt funding of €257 million.
The remaining €232 million will be underwritten by another company, Merev, which in turn will subscribe Morzal shares for €80 million. Merev has agreed not to sell, transfer or dispose of its stock in Morzal for a period of three years without the agreement of Morzal and Vukile.
Last year, Vukile completed the acquisition of another twelve malls in three deals that have converted it within this short period into a major player in medium-sized centers in Spain.