Vukile Property Fund (JSE: VKE) has raised R500m through senior unsecured bonds, attracting bids worth over R3bn — six times its target — and securing top-tier pricing.
Source: Supplied. Laurence Rapp, chief executive officer of Vukile Property Fund.
The three-year tranche of R214m priced at 102 basis points (bps), and the seven-year tranche of R286m priced at 135bps — both tighter than initial price guidance — were well received. The weighted average margin of 121bps represents a substantial improvement over existing debt maturing in Vukile’s 2026 financial year, which will be re-paid, lowering Vukile’s cost of capital.
Laurence Rapp, chief executive officer of Vukile, comments, “We are pleased with the strong demand and favourable pricing received. The substantial support for the auction demonstrates the market’s endorsement of Vukile’s disciplined approach to capital allocation, our high-quality assets and our long-term investment strategy.”
Absa Bank Limited, through its Corporate and Investment Banking division, acted as sole lead arranger.
Marcus Veller, Principal: Debt Capital Markets of Absa notes, “The keen investor interest, with over 21 institutions participating in the auction, demonstrates Vukile’s strong position as a meaningful and regular DCM issuer. Vukile’s track record of financial performance and a supportive market culminated in an excellent auction and issuance outcome.”
Maurice Shapiro, Group Head: Treasury at Vukile, adds, “The record low pricing of this bond issuance marks a significant milestone in our debt capital markets strategy. The favourable outcome reduces Vukile's average cost of debt and extends our maturity profile, reinforcing balance sheet strength and flexibility.
In July 2025, GCR Ratings upgraded Vukile’s national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook. GCR highlighted that “Vukile’s property performance remains a key rating strength,” citing its resilient portfolio as a consistent outperformer in the broader property sector.
Vukile is a specialist retail REIT with a high-quality, blue-chip-tenanted portfolio valued at approximately R50bn, operating across South Africa, as well as Spain and Portugal through its 99.6% owned Spanish subsidiary, Castellana Properties.
Vukile’s consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive, driving value creation for stakeholders.
