Vukile Property Fund, a real estate investment trust (REIT) focused on shopping malls, has acquired a 35% stake in UK-based Pradera Limited.
Pradera is a leading specialist retail property investment fund and asset manager with a 25-year track record across the UK, Europe, China and the Middle East.
“This is a significant strategic move in support of our stated goal to explore expansion into more European markets,” said Laurence Rapp, CEO of Vukile Property Fund.
“Importantly, the transaction represents a substantial stepping stone for future strategic delivery. We have always believed that on-the-ground, specialist retail knowledge and deep local insight are key to success in new markets.”
Rapp said this investment approach has served the company well in Spain and Portugal, where most of its existing operations are located through its subsidiary Castellana.
The investment in Pradera provides access to a team of more than 100 retail specialists across 12 offices, who manage around €5 billion in retail real estate assets in 10 countries.
Vukile said that the move significantly de-risks any further expansion plans that they are evaluating.
Pradera manages shopping centres and retail parks on behalf of over 60 institutional and private investors, which includes former Intu assets already familiar to the South African market.
Intu was a JSE-listed company that had shopping centres in the UK, including The Trafford Centre in Manchester and Lakeside Shopping Centre in Essex, but collapsed in 2020 due to debt and retail issues.
Vukile’s investment became effective on 18 December 2025, as did a 14% Pradera leadership buy-in, which looked to enhance alignment between management and shareholders.
Vukile and Pradera also share strong existing ties, with Castellana CEO, Alfonso Brunet, having worked at Pradera’s Madrid office before joining Castellana in 2017.
Several former Pradera employees now also form part of Castellana’s senior team. The two businesses will now pursue independent strategies while leveraging existing inherent synergies.
“Our investment in Pradera’s leading platform helps to pave the way as Vukile explores further expansion in Europe,” said Rapp.
“Vukile, Castellana and Pradera together represent Europe’s premier retail property knowledge capital, with unmatched retail real estate experience, insight and access.”
South Africa still doing well
While Vukile is pushing more into Europe, Rapp recently noted that the South African portfolio operates in a “sweet spot,” focusing on rural and township retail.
Vukile owns 30 retail assets in South Africa, including East Rand Mall, Pan Africa Shopping Centre and the recently acquired Mall of Mthatha.
Speaking in the group’s interim results, Vukile noted that retailers, especially clothing retailers, are seeing a stronger performance, which has led Vukile to increase rates.
Rapp said that retailers, especially clothing retailers, are seeing a stronger performance, which has led Vukile to increase rates.
South Africa saw like-for-like net operating income (NOI) growth of 10%. This was higher than the 8.7% in Iberia.
“Strong top-line growth is supported by proactive cost management and sustainability initiatives, encompassing both electricity and water, that operate as a growing profit centre for Vukile,” said Rapp at the time.
“Structural changes, particularly around electricity supply, are most certainly making the operating environment better than it’s been in a long time, and this is starting to bear fruit.”
One significant improvement was seen at the Mall of Mthatha, which added considerable value to the South African portfolio. After its acquisition in May 2024, the mall saw its asset value increase by nearly 40%.
