Vukile Property Fund has successfully acquired the Bonaire Shopping Centre in Spain for €305 million (R6.1 billion), marking its largest deal to date. The purchase was completed through Vukile’s subsidiary, Castellana, following a delay caused by severe floods in 2024. Bonaire, one of Spain’s major shopping centres, was secured from Unibail-Rodamco-Westfield (URW) after the deal was temporarily put on hold.
The acquisition was financed using €200 million generated from Castellana’s sale of its stake in Lar España, a Spanish retail property investor. This strategic move allowed Vukile to redeploy funds swiftly into Bonaire without cash losses. The shopping centre reopened on 13 February after extensive repairs, with an increase in customer traffic. During the repair period, several retailers also upgraded their stores, enhancing the mall’s appeal.
Bonaire is a key retail asset in Spain, having attracted substantial investment over the past five years. It boasts strong local and international connections, given its proximity to Spain’s second-largest port and the fifth-largest port in Europe. The centre is almost fully occupied, featuring popular brands such as Zara, Primark, JD Sports, Mango, H&M, Cinesa, and Fnac. Further improving its accessibility, Bonaire’s underground parking is set to reopen by mid-2025 at no additional cost to Castellana.
Vukile’s expansion in Spain reflects its broader growth strategy, which has seen Castellana extend its footprint into Portugal with the acquisition of four shopping centres since September 2024. This latest investment positions Vukile as a prominent player in the Iberian retail property market.