South Africa's Vukile targets Italian retail property market

South Africa’s Vukile Property Fund is entering the Italian property market, a move facilitated by its 35% stake acquisition in Pradera Limited in December 2025.

Bonaire Shopping Centre, Spain - Vukile Property Fund

The acquisition provides access to an experienced management team with in-depth knowledge of the Italian market, spurring Vukile to develop a pipeline of potential growth-driving transactions in Italy.

Italy offers a stable economic environment with improving credit, strong employment, and controlled inflation. It is a large, well-established European retail market attracting international investors. Favourable demand trends include low household debt, robust consumer spending, and lower e-commerce adoption, all supporting physical retail, especially in cities. The market also benefits from limited new supply, which bodes well for existing asset owners.

Vukile is finalising the acquisition of three Italian shopping centres valued at €115 mln, with an anticipated yield of approximately 10%. This acquisition will serve as the foundation for future expansion in Italy and has been factored into the FY27 guidance.

Vukile's entry into Italy involves an experienced local partner, offers an attractive initial yield exceeding the cost of capital, and includes a clear acquisition pipeline. The funds from an upcoming equity raise will be used to finance this initial Italian transaction and potential future acquisitions.