Vukile Property Fund, through its 99.5% held Spanish subsidiary Castellana Properties, has acquired the largest shopping centre in Spain’s Valencia province, the Bonaire Shopping Centre, from retail REIT Unibail-Rodamco-Westfield.
The purchase consideration of EUR305 million represents an entry yield of approximately 7%, according to the specialist retail real estate investment trust (REIT).
The acquisition of the centre, considered a Top 10 shopping centre asset in Spain, was initially delayed due to torrential flash flooding in the Valencia Region in October 2024.
As part of the centre’s reinstatement, Unibail-Rodamco-Westfield fully refurbished the ground floor’s common areas and retail units, with many retailers simultaneously taking the opportunity to upgrade their stores and introduce new concepts.
Bonaire Shopping Centre reopened on 13 February 2025.
The acquisition is being funded with the EUR200 million proceeds from the sale of Castellana’s stake in Lar España.
“We made a tremendous profit of around EUR80 million on the Lar España trade and to redeploy the proceeds so quickly into such a high-quality asset and ensure no cash leakage is testament to our team’s deal making expertise,” said Laurence Rapp, CEO of Vukile Property Fund.
Rapp also pointed to Castellana’s strategic expansion into Portugal, where it has acquired four shopping centres since September 2024, funded with proceeds from the R1.5 billion raised by Vukile in September 2024.
As part of the acquisition of Bonaire, Castellana has received an 18-month net operating income (NOI) guarantee. The centre currently has ample parking readily available, and its underground car park is expected to be reinstated and reopen by mid-2025 at no additional cost to Castellana.
Bonaire Shopping Centre is in Valencia, the third largest city, fourth most popular tourist region and third most populous residential area in Spain, boasting consumers with incomes well above the national average.
The mall boasts above-market sales density and footfall averages, according to Vukile, and a 99% long-term occupancy rate with a diversified mix of highly attractive brands.
Tenants include six Inditex fashion brands including Zara, as well as Primark, JD Sports, Cinesa, Mango, H&M and Fnac, to name a few. Bonaire also features a top-floor leisure, food and beverage area that was refurbished in 2016.
The 138-store, 55,800sqm gross lettable area (GLA) centre acquired by Castellana is linked to an Alcampo hypermarket, which takes the total property to 78,000sqm. Further, Bonaire is part of a powerful retail node of 135,200sqm and 151 stores, including Leroy Merlin, Decathlon and leasing Scandinavian furniture retailer JYSK.
For Vukile, the deal scales up its Spanish investment. From a zero base in July 2017, following the Bonaire Shopping Centre acquisition approximately two-thirds of Vukile’s assets will be offshore in the Iberian Peninsula, in the high-growth, attractive markets of Portugal and Spain.
