Everyone on board the billion rand Vukile bandwagon

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Danette Breitenbach

Vukile Property Fund opened its book build yesterday, 22 April 2015, to raise R750 million capital. The robust demand for Vukile units was heavily oversubscribed, even after being extended to R1.1 billion.

Laurence Rapp, CEO, Vukile Property Fund

Laurence Rapp, CEO of Vukile Property Fund, says, "We are delighted with the positive response from the market, which demonstrates strong investor confidence in the fund's strategies and its quality, low-risk, defensive portfolio."

He confirmed the capital raise proceeds will be used to fund enhancing acquisitions for the company, including Nonesi Mall and Synergy Income Fund's external management company, Capital Land Asset Management.

Nonesi Mall is a 28,000m² dominant small regional shopping centre in Queenstown, Eastern Cape. It includes a 96% national retailer component with anchors Checkers, Pick n Pay, Game and Woolworths.

"In addition to these transactions, there are several other opportunities in the Vukile pipeline, a number of which are nearing finalisation," he says.

Following the fund's recent acquisitions of Nonesi Mall, Batho Plaza, the 12,500m² community shopping centre in Soshanguve and the 30,000m² dominant small regional Moruleng Mall in North West, its portfolio is now valued at approximately R14.5 billion, with retail property comprising 65% of its asset base.