Vukile to acquire Madrid's Islazul Shopping Centre for €318m

Vukile Property Fund, through its 99.7% owned subsidiary Castellana Properties, has announced the acquisition of the Islazul Shopping Centre in Madrid for €318 mln.

Islazul Shopping Centre in Madrid

Castellana is purchasing Islazul from Nutwood Invest, a joint venture between Henderson Park (95%) and Eurofund (5%), at an initial yield of 6.5% and an expected cash-on-cash yield exceeding 8%. The acquisition, which will be fully funded by existing cash resources, is expected to be earnings accretive. Completion is anticipated on 30 April 2026.
This acquisition of the 90,933m² flagship shopping centre, which includes integrated value-add opportunities, aligns with Vukile's strategy of recycling capital into higher-growth Iberian shopping centres. This follows its recent €101 mln acquisition of Berceo Shopping Centre in Longrono.
Islazul's strategic location in a densely populated area of southern Madrid positions it for future growth. It benefits from a catchment area that has seen a 10% population increase in the last decade, outperforming the national average. With over 1.9 million people reachable within a 15-minute drive, the centre attracts approximately 11.5 million visits annually, ensuring robust performance.
The centre boasts excellent public and private transport links, with over half of its visitors arriving on foot or by public transport. A new metro line stop, scheduled to open in 2027, is expected to further boost accessibility.
Key retailers include Inditex brands like Zara, Stradivarius, Lefties, and Pull&Bear, alongside Mango, Primark, MediaMarkt, JD Sports, Homa, Milbby, and Lidl. A strong leisure and food and beverage offering includes 40 establishments like Yelmo Cines, Ilusiona, Burger King, McDonald’s, Tony Roma’s, and Foster’s Hollywood. 
Commenting on the transaction, Laurence Rapp, CEO of Vukile, said: “When the opportunity arose to acquire this institutional-grade asset with attractive growth prospects in a major city that is the powerhouse of Spain’s growth, we were able to move decisively, supported by a favourable cost of capital in South Africa and rotating capital from the sale of our Spanish retail parks portfolio.”