Vukile kicks off debt capital markets roadshow
Retail property specialist, Vukile will kick off its debt capital markets roadshow this week. The South African and Spanish Real Estate Investment Trust says it has 4.4 per cent or R800 million of Group debt maturing in the 2025 financial year. CNBC Africa is joined by Laurence Rapp, CEO of Vukile for more.
Mon, 22 Jul 2024 10:55:40 GMT
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AI Generated Summary
- Vukile emphasizes the importance of replacing existing debt and maintaining a strong financial health during the debt capital markets roadshow.
- The company reports positive results and trends in both the South African and Spanish markets, with a focus on essential services in the tenant mix for stability.
- Capital deployment decisions are driven by economic factors, with a preference for offshore borrowing due to the positive carry compared to local costs.
Retail property specialist, Vukile, kicks off its debt capital markets roadshow this week with a focus on replacing existing debt and maintaining a strong financial health. The South African and Spanish Real Estate Investment Trust is set to address its 4.4 per cent or R800 million Group debt maturing in the 2025 financial year. Speaking on CNBC Africa, Laurence Rapp, CEO of Vukile, emphasized the company's stability and positive performance in both the South African and Spanish markets. Rapp highlighted that only a small portion of debt is rolling off, making the replacement of capital a routine part of the business. Vukile reported strong results for the full financial year, with positive trends continuing into the new financial year. Spain's business remains exceptionally strong, with positive reversions, high rent collection, and record footfall and sales. The focus on essential services in the tenant mix positions Vukile well in both South Africa and Spain. Looking ahead, Vukile aims to refinance the significant debt in its Spanish business and maintain a well-spread expiry profile to ensure liquidity and financial strength. Rapp elaborated on the economic drivers behind the company's capital deployment decisions, noting the positive carry of offshore borrowing compared to local costs. While Vukile remains open to further investments in South Africa, decisions are primarily guided by economic considerations rather than political factors.
