Vukile strengthens Spanish retail hold with key acquisition
Vukile Property Fund (JSE: VKE) has strengthened its presence in the Spanish retail market through its 99.7% owned subsidiary, Castellana Properties, with the acquisition of a 50% stake in Barcelona’s iconic Splau Shopping Centre.
Source: Laurence Rapp, chief executive officer of Vukile Property Fund.
The prime retail asset, purchased from Unibail-Rodamco-Westfield (URW), is part of Castellana’s strategy to invest in high-performing, dominant retail properties. Structured as a 50:50 joint venture, this marks the third collaboration between URW, Castellana, and Vukile, establishing a long-term partnership that underscores their commitment to sustainable, high-quality retail real estate in Spain.
Unibail-Rodamco-Westfield (URW) will continue to oversee the day-to-day management of the shopping centre, while a joint asset-management forum will provide strategic direction, ensuring long-term value creation.
Splau Shopping Centre is valued at €350m with Castellana’s 50% stake worth €175m. The transaction will be earnings accretive for Castellana. The acquisition will be fully funded through existing cash resources, with completion expected before the end of April 2026.
Acquiring Splau continues Vukile’s disciplined capital recycling strategy into high-quality, higher-growth retail assets in Spain. So far in 2026, it has completed the sale of nine retail parks in Spain for €279 m, acquired the Berceo Shopping Centre in Logroño for €101m, and purchased the Islazul Shopping Centre in Madrid for €318 m.
These transactions advance Castellana’s focused strategy of acquiring dominant shopping centres with strong catchments, high growth potential, and clear asset-management upside.
The 54,689m² Splau Shopping Centre further diversifies and strengthens Castellana’s portfolio, which now ranks among the strongest in Iberia and includes dominant assets in all three of Spain’s largest cities – Madrid, Barcelona and Valencia.
Source: Laurence Rapp, chief executive officer of Vukile Property Fund.
Barcelona market confidence
Laurence Rapp, chief executive officer of Vukile Property Fund, comments, “This acquisition reflects our continued confidence in Spain’s retail real estate market and our ability to secure dominant assets with strong fundamentals and growth potential. We are particularly pleased to carry out this transaction alongside our esteemed partner Unibail-Rodamco-Westfield (URW).
Barcelona, Spain’s second largest city and Catalonia’s capital, is one of the most visited cities in the world, drawing around 20 million tourists annually. It combines culture, innovation and world-class cuisine with modern infrastructure and high living standards. The city fosters a vibrant professional scene, emphasising innovation, quality higher education and strong support for start-ups and tech businesses, making it an attractive destination for strategic investments.
Splau is strategically positioned in Cornella de Llobregat at Barcelona’s southern gateway and offers access to a dynamic and expanding catchment area. It holds a large market share in its catchment of about 1 million people and is easily accessible by multiple public and private transport modes with a highly desirable and convenient location next to RCDE Stadium, home of RCD Espanyol.
Opened in 2010, the centre comprises a diverse mix of 151 stores, serving Barcelona and its surrounds. The comprehensive Splau shopping experience features leading Inditex brands including Zara, Lefties, Stradivarius, Bershka and Pull&Bear, along with other top brands such as Primark, Fnac, Mercadona, Media Mark and JD Sports. A highlight is its popular food and leisure attractions with more than 36 restaurants, a bowling alley and Spain’s largest cinema.
The centre offers strong value-add potential through tenant mix improvements, expanding food and beverage options, and development projects linked to local population growth and CSR initiatives.
Iberian retail expansion
Vukile’s Iberian platform, which launched in the Spanish market through Castellana Properties, has evolved into a curated portfolio of dominant shopping centres across Spain and Portugal, with a strategy centred on dominant retail assets in strong catchments, resilient tenant demand and diversified income streams emanating from blue-chip tenants, and clear growth prospects through repositioning or value-creation opportunities.
Following the disposal of the retail parks and the acquisitions of Berceo, Islazul and Splau, Castellana Properties’ portfolio will comprise 15 assets across Spain and Portugal, with a total GLA of 594,420m² and a total portfolio value approaching of €2.2bn.
“Our asset rotation in Spain reinforces Vukile’s disciplined approach to capital allocation. Vukile will continue to pursue a disciplined pipeline of accretive acquisition opportunities, supported by our established platform and partnerships, our specialist retail expertise and strong access to capital and deal flows,” says Rapp.