Vukile, the Johannesburg-listed property fund, has agreed to purchase a portfolio of four Spanish shopping centres from Unibail-Rodamco-Westfield (URW) for €460 mln.
The transaction volume is understood to be slightly lower than the guide price and equates to a blended yield of 5.9%.
The assets are being acquired through an investment in Morzal Properties Iberia, which is executing the deal.
Vukile's 98%-held subsidiary, Castellana, will acquire 100% of the equity in Morzal after Castellana lists on Spain's Alternative Equity Market on 25 July.
The investor said it was a 'transformative' deal which would more than double the size of Castellana's portfolio, from €390 mln to €870 mln.
The purchase will be funded via debt and equity from Vukile, which raised R1.63 bn (€104 mln) in a placing this week.
The properties include the 43,423 m2 El Faro shopping centre in Badajoz, the 24,789 m2 Bahia Sur shopping centre in Cadiz, the 17,906 m2 Los Arcos shopping centre in Seville, and the 35220 m2 Vallsure shopping centre in Valladolid.
The sale of the Spanish assets by URW are part of a pledge by the company to sell €3 bn of assets to improve its financial position following the takeover of Westfield. URW has said it is focusing on divesting mainly non-core assets, but is expected to have to sell some higher quality properties to meet the target.
The investment doubles Vukile's retail property investments in Spain, after a number of deals in the last 12 months.
PropertyEU's sister publication EuroProperty reported in March that Cushman & Wakefield had been appointed to sell the Spanish portfolio.
