Vukile Property Fund's Spanish subsidiary, Castellana Properties, has obtained a new €254 mln loan from Aareal Bank.
This five-year loan, backed by Banco Santander and BBVA, will refinance existing debt associated with the El Faro, Bahía Sur, Los Arcos, and Vallsur assets. It will also support ongoing property management and repositioning of various assets.
By repaying €50 mln of the previous loan, Castellana has reduced its debt and improved its net loan-to-value from 39% to 34%. This transaction has also extended the maturity of its loans from 2.7 years to 5.1 years and increased its interest rate hedge ratio to over 90%.
Laurence Rapp, CEO of Vukile, commented: ‘We are pleased to report that Castellana has further strengthened its financial capacity as it continues to grow, add value, and reinforce the dominance of its portfolio. Robust financial capacity enables us to pursue suitable opportunities that are strategically aligned and financially accretive.’
Vukile Property Fund confirmed it remains committed to its strategy in South Africa and the Iberian Peninsula.
South Africa-based Vukile Property Fund is a retail-focused REIT that owns 32 malls in South Africa, 15 shopping centres in Spain through Castellana Properties, as well as three shopping centres in Portugal acquired last week for €176 mln, a transaction that will close on 1 October.
After this acquisition, around 64% of Vukile’s assets will be located in the Iberian Peninsula, and almost 56% of its property net operating income will be in Euros.
