Latest news with #R141
IOL News
17-06-2025
- Business
- IOL News
Vukile Property Fund reports strong annual results and forecasts higher growth for 2026
Laurance Rapp is the CEO of Vukile Property Fund. Image: Supplied Vukile Property Fund, the specialist retail estate investment trust, has upgraded its guidance by 8% for 2026 as it produced a robust set of results for the financial year ended March 31 2025. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations per share and increased its dividend per share by 6%. Laurence Rapp, the CEO of Vukile Property Fund, said, 'We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile's strategy, expands its earnings base and positions the business for compounding future growth.' Vukile's, with total property assets now exceeding R50 billion, is evolving into a more international business with growing exposure to hard currency earnings emanating from blue-chip tenants and well diversifed across macro-economic drivers. Rapp explained the year had been transformative after Vukile exited its listed share exposure in Fairvest and sold remaining stake for R141 million and redeployed into accretive solar projects and exited Spain's Lar España thus generating a capital gain of €82 million (R1.7 billion),. Lar España sale proceeds together with proceeds from R1bn equity raise in February 2024 and a R1.5bn capital raise in September 2024, allowed Vukile to acquire three assets in Portugal for €176.5m. It acquired 50% of Alegro Sintra in Lisbon for €83.4m and also acquired the Bonaire shopping centre in Valencia, Spain for €305m. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ This meant that Vukile has expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe's most resilient consumer economies. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal. In Spain and Portugal, portfolio occupancy stood at 98.4% with 95% of retail space let to international and national tenants. It saw like-for-like gross rental income growth of 5% and net operating income growth of 6.4%. Rapp said in South Africa, Vukile's robust operating platform "yet again delivered outstanding results". Valued at R16.7 billion, Vukile's defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remained exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. The total portfolio recorded trading density growth of 5.2% - with its township and rural portfolio outperforming at 6.7% - driven by Vukile's shopper-first approach, which continues to boost footfall and sales. The portfolio's cost-to-income ratio was 15.3% - its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains. In South Africa in April 2024 Vukile acquired 50% of Mall of Mthatha, previously known as BT Ngebs, for R400 million and invested a further R113 million to upgrade and refurbish the centre. Vukile said the Mall of Mthatha has delivered a "strong early performance", with the vacancy rate dropping from 16% when acquired to just 2%, adding that the highly accretive project is set for completion in September 2025. The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security. Meanwhile, looking at Vukile's solar PV rollout in South Africa, over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio's energy needs. Vukile said it has identified a further 10.6MWp of solar projects for 2026 and is finalising the agreements for two wheeling projects totalling 2MWp. The balance sheet remained sound with significant available cash balancesof R2.1 billion and undrawn debt facilities of R2.5 billion. BUSINESS REPORT Visit:
IOL News
01-05-2025
- Business
- IOL News
RAF Plundered: MPs demand accountability amid R50bn scandal
IN A scathing exposé of the Road Accident Fund's (RAF) deep-rooted issues, the Standing Committee on Public Accounts (Scopa) last week revealed a shocking level of corruption and mismanagement within this critical state entity. The revelations, presented by the Special Investigating Unit (SIU), painted a distressing picture of an organisation that has failed in its mandate to compensate victims of motor vehicle accidents while simultaneously serving as a cash cow for unscrupulous officials and service providers. Action SA's Alan Beesley minced no words when he declared: 'To me, that is absurd, and if that is the case, they should all be fired.' This was in response to the revelation that basic financial practices like periodic bank reconciliations — what he termed 'auditing 101' — were not being implemented despite the RAF's R50 billion annual turnover. The frustration among committee members was palpable, with the MK Party's David Skosana criticising the use of tentative language in the SIU report: 'The use of terms such as 'allegedly' when referring to malpractice by individuals in the SIU report could be likened to 'gossip'.' He emphasised the need for factual information at this level of investigation. Perhaps most concerning was the complete lack of vetting for RAF executives, as revealed by Scopa chairperson Songezo Zibi: 'Not a single executive at the RAF has been vetted yet. All of them are in process, from the chief executive on down.' This failure extended to the chief investment officer, who had previously faced multiple charges of malpractice at the City of Johannesburg, only for those charges to be abandoned upon his resignation. The financial irregularities uncovered were staggering. The SIU reported that R141 million appeared to be an irregular payment lacking board approval. Particularly troubling was the cancellation of the panel of attorneys without a backup plan, potentially opening another channel for financial losses. As the DA's Patrick Atkinson pointed out: 'The 'huge loss' suffered by the RAF due to not having a proper panel of attorneys in place was because of the actions of the Board.' The ANC's Helen Neale-May highlighted a pervasive culture of non-compliance, noting that contract management had been 'blatantly flouted'. This was evident in various contracts under investigation, including: Siyenza contract: R313 201 152.98 Office Building contract: R17 000 000 Fleet contract: R53 166 897 Cleaning contract: R12 117 260.80 SAP contract: R1 811 764 Office Furniture contract: R40 000 000 All these contracts showed signs of procurement irregularities and fruitless expenditure, with investigations complete and matters being finalised for referral to civil litigation. The investigation revealed a shocking level of complicity from legal professionals. Duplicate payments to attorneys and sheriffs emerged as a major concern. While some law firms cooperated with the SIU, others had not honoured their Acknowledgement of Debt agreements. As the MK Party's Thalente Kubheka cautioned: 'Once the media run with it, they would 'lap it up' but some of the individuals mentioned in the report had not been given an opportunity to have a right of reply yet.' The EFF's Chumani Matiwane added: 'It was 'quite concerning' to hear that bribes might have been paid in relation to work demonstrated in the allocation of work to a single law firm.' He also highlighted the manipulation of criteria to favour specific suppliers in the Siyenza Project. Despite 20 matters already referred to the National Prosecuting Authority (NPA) for prosecution consideration and 20 cases referred for disciplinary action, MPs expressed frustration at the slow pace of accountability. The DA's Farhat Essack captured the sentiment perfectly: 'There was 'absolutely' no accountability… The RAF was being 'plundered' and had become a cash cow for many individuals.' The chairperson announced plans to seek legal advice on handling sensitive information, acknowledging concerns about reputational damage before the right of reply. However, he maintained that Scopa needed to hold dear their responsibility to ensure 'people with valid claims were paid fairly and that this was done in a timely manner'. Adding to the list of concerns was the mention of ransomware attacks affecting the RAF's systems. While the SIU confirmed that no impact was detected in terms of the information needed for their investigation, Zibi emphasised the need for better cybersecurity measures: 'Ransomware should not be problematic, especially in institutions that process large sums of money like the RAF.' Zibi also announced plans to engage with other government departments, including the Minister of State Security and the Minister of Communication and Digital Technologies, to address systemic issues affecting the RAF's operations. He further emphasised the need for improved vetting processes and better support from state agencies. As the meeting adjourned, it was clear that the RAF faced a long road ahead in restoring public trust and implementing necessary reforms. The question remains whether these revelations will finally spur meaningful change or simply become another chapter in the fund's troubled history.
