Latest news with #VukilePropertyFund
IOL News
24-07-2025
- Business
- IOL News
Transforming retail: Daveyton Mall introduces new multi-tenant emporium for small businesses
Daveyton Mall, first opened in 1993, is one of South Africa's first township malls. It has launched a new emporium. Image: Supplied Vukile Property Fund, a specialist consumer-led retail real estate investment trust (REIT), has launched a new multi-tenant emporium at Daveyton Mall. 'We're invested in more than shopping centres. We're invested in the communities they serve. The success of our centres is grounded in understanding local needs, and meeting and exceeding them,' says Laurence Rapp, CEO of Vukile Property Fund. "With a customer-first approach, we co-create retail spaces and experiences that genuinely reflect and serve their unique communities while celebrating local talent, culture, community and innovation. The Vukile Retail Academy is a tangible expression of that philosophy." This was said to be part of the next phase of its game-changing Vukile Retail Academy. The project is said to bring fresh, community-driven retail experiences to local shoppers while helping small businesses grow into sustainable enterprises. Now in its third year, the Vukile Retail Academy delivered on its founding aim of providing access to formal retail for promising entrepreneurs. Participants receive rent-free premises, fit-out support and hands-on mentorship. The initiative forms part of Vukile's wider commitment to inclusive growth, tenant diversity and shared opportunity across the retail ecosystem. Matching retail strategy with community needs was said to be at the heart of Vukile's singular business model. It's popular, high-performing shopping centres, 33 of them in South Africa and the 20 retail assets abroad in Spain and Portugal, serve as platforms for local growth in each location. They do this by supporting entrepreneurs, integrating cultural identity, and fostering loyalty through authentic engagement. This customer-centric, community-first approach is changing the retail landscape. Launched in 2022, the Vukile Retail Academy programme has already made a measurable impact. The first intake of eight entrepreneurs received 1,035 sqm of retail space to trade from across four shopping centres, along with tailored business and operational support. 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. 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In 2024, four businesses from Randburg Square-Lonja Beauty Studio, Edenvinne, Vero's Cake and Jeleni & Phindi Art Studio-have also joined the formal tenant mix, underlining the Vukile Retail Academy's role in long-term tenant development. 'We're seeing dreams become sustainable businesses,' says Itumeleng Mothibeli, MD SA at Vukile. 'At the heart of the Vukile Retail Academy is a belief in people and potential. "This programme is about removing barriers, nurturing talent and actioning our deep commitment to building the next generation of retailers, who will shape the future of South African retail." This year, the Vukile Retail Academy introduces an emporium-style space at Daveyton Mall, bringing five small businesses under one roof. The shared space allows entrepreneurs to share costs, test products and grow visibility in an animated, high-footfall retail setting. These up-and-coming brands in the new emporium are: Seven Heartbeats: A cultural lifestyle brand blending contemporary fashion with traditional African design. Cossen: African-inspired fashion and footwear with live shoemaking experiences. Thesis Lifestyle: A Soweto-born streetwear brand celebrating township pride. A tech-driven edutainment hub promoting digital learning and innovation. PeaPrido Elegance Events: A Daveyton-based events company delivering personalised, high-quality experiences. Some of these businesses are expanding from existing markets or online platforms, with each coming with its own story, contributing fresh energy and relevance to the mall's offering. The Daveyton Mall, first opened over three decades ago, is one of South Africa's first township malls. It was recently upgraded and extended by Vukile and stands as a modern reflection of the colourful heritage of its community. The new design celebrates local culture through architectural features, murals and art installations. This culturally rich environment creates a powerful platform for a retail experience that truly belongs to its people. Reflecting its role as a community anchor, the mall's redevelopment included significant local participation, resulting in a retail centre that does more than serve the community; it reflects and empowers it. Its trailblazing new emporium of entrepreneurs extends this ethos. At Vukile, retail is about people before products. The Vukile Retail Academy reflects its longer-term ambition to help shape a retail sector that mirrors the depth and potential of South Africa's entrepreneurial talent. 'This flagship initiative is rooted in our commitment to building a retail ecosystem where local talent thrives and communities feel seen, supported and proud. It's about creating lasting partnerships for a better South Africa,' Rapp said. Business Partners Limited said South African small and medium enterprises (SMEs) have had a tumultuous few years, affected by a broad spectrum of political and economic issues. Despite these challenges, it said many business owners managed to keep their businesses afloat, and some have even found opportunities for growth and development. A crucial factor in the success of many of these businesses was having a proactive plan to address the challenges they encountered, it said. In May, Jeremy Lang, Managing Director at Business Partners Limited, said only one in five SMEs manages to secure the financial support they need to grow their businesses. He said in South Africa, 87% of small businesses have never accessed credit due to traditional lending practices like reliance on collateral and rigid credit scoring systems, creating financial exclusion. "This exclusion is particularly pronounced among small and early-stage enterprises, which make up the 'missing middle' of SMEs and don't fit traditional financiers' one-size-fits-all requirements." Independent Media Property
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. 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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:
The Citizen
12-05-2025
- Business
- The Citizen
WATCH: Bedworth Centre gets a makeover
VEREENIGING – The Bedworth Centre between Vereeniging and Vanderbijlpark has undergone a R141m redevelopment, transforming it into a modern, community-centric retail destination. The project, completed by Vukile Property Fund, introduces national retailers and essential services to better serve the local population. Strategically located at the corner of Ascot-on-Vaal Road and the R42, the centre now boasts over 41 stores, including new anchors Boxer and Shoprite, which opened in late 2024. These additions enhance the variety and convenience of shopping options for residents of Bedworth Park, Sharpeville, Bophelong, and students from the Vaal University of Technology and North West University Vaal Campus. The redevelopment focused on improving aesthetics, layout, access, and security. Notable new tenants include Hungry Lion, Big Joe Pies, Fish & Chips Co, Factory 88, Jam Clothing, Bellama, Blooming Beauty, Pep Home, OK Furniture, and Volpes. A standout feature is Pepkor Group's Home. Tech. Sleep concept store, the second of its kind in South Africa, offering integrated home solutionshttps:// across 1 570 square meters. Further enhancing the centre's role in the community, a SARS Client Service Centre has been added, providing residents with closer access to essential government services. This integration of retail and public services underscores Vukile's commitment to creating spaces that serve the broahttps:// community. Vukile's approach combines deep local insight with data analytics to curate tenant mixes that resonate with the unique needs and aspirations of the community. This redevelopment not only upgrades the physical space but also strengthens Bedworth Centre's position as a cornerstone of convenience and connection in the area.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Zawya
03-04-2025
- Business
- Zawya
South Africa's Vukile expands aggressively in Europe, signals more growth
South Africa's well-known specialist retail real estate investment trust, Vukile Property Fund delivered a strong pre-close trading update for its financial year ended 31 March 2025, underscoring its dealmaking dexterity, strategic expansion and robust operational delivery. Vukile confirmed it is on track to meet its full-year guidance of 2% to 4% growth in funds from operations (FFO) per share and 6% growth in dividends per share (DPS). Reflecting strong business momentum and high-quality earnings, Vukile also provided preliminary guidance on FFO and dividend per share growth for FY26 of at least 6%, based on conservative assumptions and without anticipating any need for new equity capital. The transformative year has been underpinned by strategic execution. Driven by disciplined dealmaking and decisive capital deployment, Vukile's gross asset value now exceeds R50bn. Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile grew its asset base in Spain and Portugal by nearly 60%. It exited its investment in Lar España at an impressive profit of €82m, swiftly redeploying capital to acquire the iconic Bonaire Shopping Centre in Spain's Valencia province at a compelling cash-on-cash return of over 8%, avoiding cash drag and securing sustainable earnings from a top-quality asset. Adding a new engine of growth to its strategy, Vukile entered Portugal with four high-quality retail acquisitions. A fifth deal is well advanced and already fully funded. All-in-all, the Iberian portfolio grew around 60% over the 12 months, cementing Vukile's dominant position across two of Europe's strongest economies − Spain and Portugal. Approximately two-thirds of Vukile's assets and 60% of earnings are now offshore. Strategic growth and optimisation In South Africa, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) in May 2024, where early turnaround performance has exceeded expectations. The mall's vacancy rate has decreased dramatically from 18% to just 1.8%. These assets were acquired at a favourable point in the cycle, expanding Vukile's footprint and growing its Iberian portfolio with strategically aligned, high-performing assets that are delivering strong cash flows with further upside through targeted asset management. 'We've come through a phase of explosive growth. Now, we're focused on integration, optimisation and crystallising value from these assets. Vukile remains open to opportunities but will prioritise deepening value within its current footprint, and for the time being we don't expect to raise capital,' confirms Laurence Rapp, chief executive officer of Vukile Property Fund. Operational strength has stood out across Vukile's portfolio of high-performance, strategically located shopping centres, with limited exposure to new competition and strong pricing power. In South Africa, like-for-like net property income (NPI) grew 6.4%, vacancies remain below 2%, and 84% of rental reversions were positive or flat. The portfolio has recorded growth in both sales and footfall. The cost-to-income ratio reduced to 15%, with ongoing progress in solar and water initiatives enhancing sustainability metrics and efficiencies. In the Iberian portfolio, like-for-like NPI increased by almost 2% and with various value-add projects now complete, significant upward momentum can be expected in the year ahead. Vacancies in both portfolios remain below 2%. Positive rental reversions were a standout 23.6% in Spain and 6.15% in Portugal. Sales grew 4.3% in Spain and 6.7% in Portugal. 'With a well-hedged balance sheet, minimal near-term debt expiries of just 2% maturing in FY26 and strong liquidity, Vukile is closing FY25 in an exceptionally positive position,' says Rapp.
