Vukile completes accelerated book build

Vukile Property Fund has successfully completed an accelerated book build to issue R1 billion in new ordinary shares. The aim of this fundraising initiative is to strengthen the company's finances for expansion in retail real estate within South Africa and Spain. By reducing debt and supporting its strategy for smart investments, Vukile Property Fund is positioning itself for growth and diversification in its portfolio. Laurence Rapp, CEO of Vukile Property Fund, joined CNBC Africa to discuss the strategic implications of this significant fund raise. Rapp emphasized that the company is constantly seeking growth opportunities, particularly in South Africa and Spain. With a strong pipeline of potential deals, the timing for raising capital was opportune. Vukile Property Fund aims to acquire notably dominant assets in the market, aligning with its strategy for portfolio diversification and sustainable growth. Despite challenging market conditions, Rapp highlighted the abundance of offshore opportunities compared to local markets. The company remains active in evaluating numerous deals, ensuring that only the most strategically aligned and financially lucrative investments are pursued. As a result, Vukile Property Fund currently has one of the most substantial deal pipelines in the last five years. The successful capital raise not only reflects investor confidence in the company but also signals a renewed interest in the property sector. While the sector may not be buoyant, the lower interest rate cycle is attracting investors, leading to a more positive outlook. Rapp views the capital raise as a strong endorsement of the company's strategy, capital allocation history, and past performance. Looking ahead, Rapp outlined a roadmap for the deployment of the raised capital. The company aims to invest the funds strategically in both South Africa and Spain, considering the differing yields and cost structures in each market. With a target to have the capital deployed by September, Vukile Property Fund is focused on delivering strong operating results and ensuring that the investments are aligned with its long-term growth objectives. As Vukile Property Fund moves forward, the company's primary focus will be on delivering strong financial results and effectively deploying the raised capital into accretive deals. With a clear roadmap and a robust pipeline of opportunities, Vukile Property Fund is poised for growth and expansion in the retail real estate sector.