Vukile Property Fund Limited, the Johannesburg-listed retail REIT led by CEO Laurence Rapp, is approaching $6 billion in assets under management as its expansion across Europe strengthens its position as a leading retail property investor in Africa and international markets.

The JSE-listed group with assets under management of €5 billion ($5.8 billion) has expanded its European footprint through its 99.7%-owned Castellana Properties platform in Spain and Portugal, a 35% stake in pan-European retail fund and asset manager Pradera, and a new entry into Italy through an inaugural €115 million ($133.78 million) portfolio of three shopping centres.

Vukile’s growth comes as the group reported a strong financial performance for the year ended March 31, 2026, with gross property revenue rising to R5.8 billion ($361.51 million) from R4.5 billion ($280.48 million) a year earlier, while profit attributable to owners increased to R5.7 billion ($355.29 million) from R3.2 billion ($199.46 million).

European expansion reshapes Vukile’s portfolio

The South African specialist retail property group has expanded its international footprint and grown its asset base to R63.7 billion ($3.5 billion), with almost 70% of its portfolio now invested across Spain, Portugal and Italy. The JSE- and Namibian-listed real estate investment trust delivered strong operating results for the year ended March 31, 2026, recording 9.3% growth in both funds from operations (FFO) per share and dividends per share.

Vukile’s international portfolio is anchored by its 99.7%-owned subsidiary Castellana Properties, which holds a €2.2 billion ($2.6 billion) portfolio across Spain and Portugal. During the year, Vukile acquired a 35% stake in Pradera, a pan-European retail fund and asset manager with €5 billion ($5.8 billion) in assets under management.

The investment provided a platform for Vukile to enter Italy, where it acquired three shopping centres for €115 million ($134 million) through its newly established Esperia Properties platform. The properties, Le Due Valli in Turin, Le Centurie in Padua and Quarto Nuovo in Naples, had an initial yield of 10%. Vukile plans to build Esperia into a portfolio exceeding €500 million ($581.63 million) over time, with two further acquisitions worth a combined €200 million ($232.65 million) already lined up.

South African retail portfolio remains resilient

Despite its growing European exposure, South Africa remains an important part of Vukile’s strategy, with its R19.5 billion ($1.1 billion) portfolio comprising township, rural, urban and commuter malls.

The South African portfolio delivered like-for-like net operating income growth of 10.3%, while retailer sales increased 5.4% and footfall rose 2.2%.

Vacancies remained low at 1.7%, while rental reversions improved to 3.7%. The portfolio’s cost-to-income ratio also improved to 12.4% from 15.3%, helped by electricity savings from solar photovoltaic installations exceeding 40.3MWp.

Asset management drives value creation

Vukile continued investing in upgrades and expansions designed to improve the performance and resilience of its retail properties.

At Nonesi Mall in South Africa, the group is investing R76 million in a 3,200-square-metre extension and refurbishment project expected to generate a 9.5% yield.

In Spain, Castellana invested €16.7 million ($19.43 million) in repositioning Vallsur into a broader leisure and dining destination, while a €32 million ($37.23 million) expansion and reconfiguration of Los Arcos is already fully let.

Vukile also invested R71 million ($4.43 million) at East Rand Mall to convert more than 5,000 square metres of former cinema space into a multi-tenant retail offering.

Strong financial position supports expansion

Vukile raised R2.8 billion ($174.53 million) in May 2026 through an oversubscribed capital raise, following a R2.65 billion ($165.18 million) raise in October 2025.

The group ended the financial year with nearly R8 billion ($498.65 million) in available liquidity, while its loan-to-value ratio declined to 38.4% and interest cover increased to three times.

Gross property revenue increased to R5.8 billion ($361.51 million) from R4.5 billion ($280.48 million), while net profit from property operations rose to R3.9 billion ($243.08 million) from R3 billion ($186.98 million). Profit attributable to owners of the parent jumped to R5.7 billion ($355.29 million) from R3.2 billion ($199.46 million).

Vukile targets further growth in FY27

Chief Executive Officer Laurence Rapp said Vukile’s performance reflected operational execution, value-enhancing projects, acquisitions in core markets and strategic expansion into new territories.

For the financial year ending March 31, 2027, Vukile expects FFO per share to increase between 8% and 10%, while dividend per share growth is forecast at between 10% and 12%.

The outlook will be supported by continued growth across its South African and Iberian portfolios, value-add projects and further expansion in Italy, as Vukile seeks to build a more diversified European retail property platform.