Vukile buys majority stake in Spanish property company

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JOHANNESBURG, August 2 – JSE-listed Vukile Property Fund announced on Thursday that it has acquired a controlling 51 percent stake in Morzal Properties Iberia S.L. in a bid to expand its property portfolio in Spain.

Last month, Vukile said it would be concluding an agreement to subscribe for shares in Morzal for an aggregate subscription consideration of €152 million, or R2.3 billion, after Morzal acquired a portfolio of four Spanish shopping centres from Unibail-Rodamco-Westfield for €489 million.

Vukile has also presented its 98.3 percent subsidiary, Castellana Properties Socimi S.A, with the opportunity to acquire 100 percent of the equity in Morzal, including Vukile’s 51 percent, at €6.00 per Morzal share, by way of a shares for shares transaction, or a share swap.

Vukile said that the board of Castellana, which listed on the Alternative Equity Market operated by the Spanish Stock Exchange, agreed on Wednesday, to proceed with the Castellana share swap. (ANA)