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Acquisition of Forum Madeira shopping centre
VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE NSX share code: VKN
Bond company code: VKEI
ISIN: ZAE000180865
(Granted REIT status with the JSE)
("Vukile" or the "Company")
ACQUISITION OF FORUM MADEIRA SHOPPING CENTRE
1. Introduction
Shareholders are advised that Vukile's 99.5% held subsidiary, Castellana Properties SOCIMI, S.A. ("Castellana"),
through its own 70%-owned subsidiary Caminho Propício – SIC IMOBILIARIA FECHADA S.A. ("Caminho"),
has concluded a share purchase agreement (the "SPA") with DWS Grundbesitz GmbH (the "Seller"), a German
company acting in its capacity as an alternative investment fund manager and ultimately owned by Grundbesitz
Global, an open-ended real estate investment fund, pursuant to which Caminho will acquire the shopping centre
known as Forum Madeira located in Funchal, Portugal (the "Property" or the "Centre") (the "Acquisition").
In terms of the SPA, Caminho will purchase the entire issued share capital of the Property-owning company and the
company housing the Property's operations – namely, DB Real Estate Investment Madeira – Sociedade Imobiliaria,
S.A. and DB Real Estate Investment Madeira – Sociedade Imobiliaria, Unipessoal Lda. (together, the "Companies").
2. Profile of the Property
Forum Madeira is an established shopping centre located on the island of Madeira, Portugal, comprising a total gross
lettable area ("GLA") of 21 472m2. The Centre is situated in the western part of Funchal, which is the capital city
and the main residential and commercial area of Madeira. The Centre is distributed on three floors and is well-
anchored by the Inditex group, Pingo Doce and the most popular cinema on the island, Cinema NOS. The Centre is
open-air, taking advantage of the moderate and consistently favourable climate on the island.
The Centre boasts an attractive footfall of 5.4 million visits and strong sales per m2 of EUR 4 694, serving a catchment
of c.250 000 residents as well as 2.3 million tourists annually. The Centre is currently 100% occupied.
3. Rationale
The Acquisition offers the opportunity to acquire a high-performing shopping centre on the island of Madeira, with
low effort rates and high sales levels, showing strong potential for continued growth. The asset is the only centre in
Madeira to offer the full suite of Inditex brands and is anchored by a strong Pingo Doce supermarket.
Madeira has been a leading growth area in Portugal, where GDP growth in the Autonomous Region of Madeira has
been 23.4% since 2019. Unemployment on the island has fallen from 11.1% in 2017 to 5.9% in 2023. In 2023,
Madeira registered over 10.9 million overnight stays, which makes it the 3rd most visited destination in Portugal, after
Porto and Lisbon. Western Funchal is a growing area for luxury hotels and residential developments.
The Centre offers opportunities to improve NOI and overall quality by improving the tenant mix through the
introduction of new tenants.
4. Terms of the Acquisition and Closing
The purchase consideration payable for the Property is EUR 63 321 113.38 (the "Purchase Consideration"). The
effective date of the Acquisition is expected to be no later than 30 April 2025 (the "Closing Date"). The Purchase
Consideration will be settled by Caminho in cash and discharged on the Closing Date.
The Property is being acquired at an initial net operating income yield of c.9.5%. When applying the anticipated
interest cost on the proposed senior debt, the Property is expected to deliver a cash-on-cash yield of c.11.8%, before
withholding tax and excluding transaction costs.
The Seller shall ensure that, until the Closing Date, the Companies carry out their businesses in the ordinary and
usual course, as carried out prior to the conclusion of the SPA.
The SPA includes market-standard warranties, indemnities and undertakings for a transaction of this nature.
Completion of the Acquisition is not subject to any conditions precedent.
5. Funding
The Acquisition will be funded by a combination of existing cash resources and in-country debt of EUR 28 000 000,
representing a loan-to-value ratio of c.38.5%. The entire issued share capital of the Companies will be acquired by
Caminho, which is in turn owned 70% by Castellana and 30% by Rand Merchant Bank (RMB).
6. Property specific information
Details of the Property are set out in the table below:
Weighted Value attributed to the
average rental Purchase Property as at
Property Geographical GLA per m2 Consideration 15 November 2024
name location Sector (m2) (EUR/m2/month) (EUR) (EUR)
Forum Funchal, Retail 21 472 22.6 63 321 113.38 72 820 000
Madeira Portugal
The Property was valued in accordance with Royal Institution of Chartered Surveyors standards by X-Yields, an
independent external property valuer.
7. Voluntary announcement
The Acquisition is not categorisable in terms of the JSE Listings Requirements. Therefore, this announcement is
voluntary and for information purposes only.
11 April 2025
JSE sponsor NSX sponsor
Java Capital IJG Securities (Pty) Ltd
Date: 11-04-2025 07:30:00
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