Signalling a powerful comeback for the investment class, REITs Dipula, Fairvest and Vukile place in the top five

South Africa’s real estate investment trust (REIT) sector has capped a strong year with significant recognition in the Sunday Times Top 100 Companies 2025 announced on 9 November. Dipula Properties took the overall top spot, Fairvest ranked second and Vukile Property Fund placed fifth, confirming three REITs in the top five and broad strength across all listed property.

Joanne Solomon, Chief Executive Officer of the SA REIT Association, says the recognition reflects improving fundamentals across the sector. “Seeing REITs lead the Top 100 this year highlights disciplined capital allocation, stronger balance sheets and consistent dividend delivery. Investors are recognising the sector’s renewed earnings trajectory and the important role REITs play in diversified portfolios.”

This strong showing comes in a year of improving market performance. The October SA REIT Chart Book recorded a 10.8% monthly total return for the SA REIT Index, the strongest monthly gain since 2021, taking year to date performance of the sector to 26.4% up until 31 October 2025. Liquidity improved across the board with several high-quality portfolios accessing equity at prices closer to reported net asset value which signals a healthier cost of capital. Ian Anderson, compiler of the Chart Book and Head of Listed Property at Merchant West Investments, notes that October marked a turning point as investors rotated back into REITs at scale.

The Top 100 Companies in context

The Sunday Times Top 100 Companies ranks JSE listed companies by compound annual growth rate over a five-year period on a theoretical R10 000 investment with dividends reinvested. The analysis adjusts for corporate actions such as dividends, capitalisations, unbundling, share splits and consolidations. Companies must meet minimum size and liquidity thresholds and be active on the JSE throughout the measurement window. The 2025 results were compiled from market data, verified independently and published as a special Sunday Times supplement.

REIT company perspectives

Dipula Properties, the overall 2025 winner, marked its 20th anniversary with a refreshed brand and continued focus on community and convenience retail. In the Sunday Times Top 100 Companies special supplement, CEO Izak Petersen says, “The past 20 years have been an incredible journey filled with lessons, challenges and growth. We’ve played the cards we were dealt with resilience and determination, consistently delivering sustainable returns to our shareholders.” He adds, “We invest in retail properties that enhance community wellbeing by providing well located trading spaces and convenient access for shoppers. Our portfolio includes defensive retail centres in urban, township and rural areas across South Africa that are tailored to meet local needs and offer essential goods and services.”

Fairvest, ranked second, has been rewarded for its transformation into a retail-only REIT. CEO Darren Wilder remarks in the Sunday Times supplement, that the company is disposing of non-core assets and reinvesting in retail-focused properties. “By implementing this strategy, Fairvest is moving toward becoming a retail-only REIT, focused on the market in which it has extensive experience. The management team will continue to implement this strategy, with minimal to no value destruction. Over 70% of revenue is already generated from Fairvest’s retail portfolio,” he says.

Vukile Property Fund, fifth in the Top 100, highlighted the benefits of a clear strategy and selective offshore growth. CEO Laurence Rapp says in the supplement, “We’ve stayed true to a well-defined strategy and executed it with discipline. We specialise in retail, and we do so with deep operational intent. That means understanding the consumer, designing centres that are tailor made to their needs and align with tenant success. Growing affinity with shoppers grows value for tenants and grows earnings for shareholders.” On the group’s Iberian expansion he notes, “Our entries into Spain and then Portugal were contrarian and demonstrate how our ability to see opportunity ahead of the market and to act with entrepreneurial yet disciplined dealmaking has been key to scaling the business.”

Wider sector representation

Beyond the top five, REITs and other listed property companies were well represented across the rankings, including Fortress Real Estate Investments, SA Corporate Real Estate, Attacq, Hyprop Investments, Emira Property Fund, Redefine Properties, NEPI Rockcastle, Resilient REIT, MAS, Stor-Age Property REIT, Sirius Real Estate, Growthpoint Properties, Burstone Group and Equites Property Fund, among others. This breadth reflects a property sector that has streamlined portfolios, recycled capital into high-confidence properties and rebuilt investor conviction through consistent distribution guidance.

Solomon says, “REITs have responded to a tough cycle with portfolio optimisation and prudent funding. The sector is now positioned to deliver income growth ahead of inflation with improving access to capital. The Sunday Times recognition underscores that progress and the operational resilience that supports it.”

SA REIT Chart Book and conference

The latest SA REIT Chart Book provides monthly sector performance, valuation, yield and capital markets intelligence for investors and media. The October 2025 edition was released on 6 November 2025 and can be accessed here.

The SA REIT Conference 2026, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, takes place on 12 February 2026 at The Houghton Hotel, Johannesburg, with a keynote by Peter Verwer, Executive Chairman of Futurefy. Register here.

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Operational strength is evident across Vukile’s portfolio of well-located, high-performing shopping centres, which are designed and managed around the customers and communities they serve. Driving positive momentum is the active integration of recently acquired assets in Spain and Portugal, with both Iberian portfolios delivering outstanding metrics, supported by top-tier performance from the South African portfolio.

Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile acquired its fifth Portuguese asset, Forum Madeira, for EUR63 million at a yield of 9.5% in April 2025. The transaction places 65% of the group’s more than R50 billion of assets, and 60% of its net property income, offshore.

“We signalled to the market that our operational priority was integrating, optimising and unlocking value from our newly acquired Iberian assets. Significant progress has already been made, including the alignment of processes and data management, allowing the Castellana team to start implementing their expertise in value-add asset management initiatives,” confirms Laurence Rapp, CEO of Vukile Property Fund.

The Iberian portfolio demonstrated significant strength. Occupancy across the portfolio is 99%. Positive rental reversions totalled 3.4% — 2.8% in Spain and 6.17% in Portugal. Sales grew 5.7% in Spain and 4.1% in Portugal, or 5.1% in total, with footfalls up 3.0% across the board.

In the South African portfolio, all key metrics improved or remained in line with the prior period’s excellent results. Like-for-like net operating income grew 8% and vacancies remained below 2%, reflecting sustained high occupancy and strong demand for Vukile’s retail space across all segments. Vukile reported positive rental reversions for the fourth consecutive year, which are now growing at around 1.6%, with 83% of leases agreed at positive or flat rental levels. Portfolio trade and footfalls increased, led by township and rural malls. Vukile successfully reduced its cost-to-income ratio yet again, to 13%, led by additional solar PV installed and targeted cost efficiencies.

Vukile continued to enjoy excellent support in the local debt capital market, with its R500 million bond issuance in August 2025 six-times oversubscribed and 21 investors participating. It achieved the lowest margins since the DMTN programme launched in 2012. In addition, GCR upgraded Vukile’s credit rating to AA+_(za) with a stable outlook.

“Vukile has commenced FY26 with robust and sustainable operational and financial strength. We remain open for business with an early-stage pipeline of deal opportunities, which will be subject to our disciplined capital allocation ensuring the deals we do are both strategically aligned and financially accretive,” says Rapp.

Vukile Property Fund will update the market with revised guidance when it reports results for the six-month interim period to 30 September, on 26 November 2025.

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Vukile’s classroom campaign empowers Dobsonville’s children to challenge harmful norms

DOBSONVILLE, Soweto — In a bright classroom at Margaret Gwele Primary School, a group of Grade 5 girls stood a little taller — literally and figuratively — as they learned to use their voices, set boundaries and speak their worth. In the same school, a few doors down, a group of Grade 5 boys explored ways of practicing empathy and discussed what it truly means to be an active bystander.

 These lessons mark the next chapter in Vukile Property Fund’s Empowered Women initiative, now in its second year. The initiative has already reached more than 900 women through GBV awareness and support events hosted across Vukile’s shopping centre portfolio throughout South Africa.

Vukile’s powerful new programme, a partnership with Action Breaks Silence aimed at preventing gender-based violence (GBV) before it starts, titled “Empowerment, Empathy and Active Bystander”, is being delivered to over 570 Grade 5 and Grade 6 learners across six schools in the Dobsonville area of Soweto, where Vukile owns Dobsonville Mall. Its addition to Vukile’s Empowered Women initiative delivers GBV prevention work directly into primary schools.

The media and key stakeholders were invited to witness the programme in action today, as trainers led real sessions with Grade 5 learners at Margaret Gwele Primary, sharing the chance to experience firsthand how education, empowerment and empathy can change the trajectory of an entire community.

“This powerful programme of preventing violence against women and girls is about planting seeds of confidence, empathy and awareness in children at exactly the age when gender norms start to solidify. By reaching children now, we can disrupt harmful cycles that often span generations,” says Marijke Coetzee, Director: Marketing and Communications at Vukile Property Fund.

 In addition to Margaret Gwele Primary, the programme is being delivered at Hector Pietersen, Enkolweni, Phakamani, Livhuwani and Rebongwe Primary.

Active and responsive community investment

The programme, developed by Action Breaks Silence, includes12 one-hour sessions: six each in Grade 5 and 6. Grade 5 is the only time that the programme holds separate sessions for girls and boys to create safe spaces at a critical time for the children.

The same groups of children come together in Grade 6. Over six weeks of sessions, one of their key projects is to create a poster campaign that educates their peers about tackling sexual harassment and challenging violence against women and girls. The posters are displayed around the schools, and the winning team is celebrated at a public assembly. All this comes together to create a whole school initiative, helping to normalise speaking out against sexual harassment and reinforcing that children have the power to make a change.

“Vukile’s commitment to this programme furthers our shared goal to challenge and rewrite harmful norms before they take root,” says Niki Hall-Jones, South African Programme Manager for Action Breaks Silence. “Research shows that gender norms and harmful masculinity start solidifying by the ages of 10 to 12. This highlights the importance of going into schools early with age-appropriate content and proven methods to help children reimagine what respect, power and kindness look like, and shift trajectories before violence becomes internalised.”

 A multi-faceted platform for local change

Besides the children who receive this potentially life-changing training, Vukile’s investment in this project has created employment and skills development for local youth.

Of the seven facilitators running the Vukile’s Dobsonville programme, four are newly trained facilitators from the Dobsonville area, while three are experienced trainers from Soweto. The new facilitators have been trained through a rigorous “train-the-trainer” process that includes modules on child safeguarding, communication and diversity, equity and inclusion, as well as programme delivery. A peer-to-peer mentorship model ensures the experienced facilitators are on hand to guide and support new recruits.

This work transforms the lives of the youth facilitators as much is it empowers the children they train. The young change-makers become visible role models in their own communities.

“This programme is a commitment to the community of Dobsonville,” says Thato Matlala, Centre Manager at Dobsonville Mall.  “Our mall is a community anchor, and we take that responsibility seriously.”

 Taking community-centred action

Vukile’s investment in long-term community wellbeing is well established and constantly evolving. From centre-level events to national partnerships, Vukile aligns all its social impact initiatives to five core pillars, one of which is GBV prevention. By tracking data and measuring outcomes, Vukile ensures that its impact is clear and sustainable.

For Coetzee, the Empowered Women initiative reflects the community-first ethos that defines Vukile. “We strive to embed purpose into how we operate on the ground, for our customers and their communities, and the Empowered Women initiative is one of the ways we are doing that.”

 She adds that she hopes the confidence and empathy shared with the children through this project also ignites purpose within their lives, because everyone can make a difference. “Any investment in children and a society without violence against women and girls is an investment in a better future. With this programme, we see children not just learning, but leading.”

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 Vukile Property Fund (JSE: VKE) has successfully concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing. The offering was met with overwhelming demand, attracting more than R3 billion in bids — over six times the target issue size.

The three-year tranche of R214 million priced at 102 basis points (bps) and the seven-year tranche of R286 million priced at 135bps — both tighter than initial price guidance. 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 of 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 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 R50 billion, 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.

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Now in its third year, the Vukile Retail Academy continues to deliver on its founding aim: providing access to formal retail for promising entrepreneurs. Participants receive rent-free premises, fit-out support and hands-on mentorship. The initiative forms part of Vukile’s wider commitment to inclusive growth, tenant diversity and shared opportunity across the retail ecosystem.

Matching retail strategy with community needs is at the heart of Vukile’s singular business model. Its popular, high-performing shopping centres – all 33 of them in South Africa and the 20 retail assets abroad in Spain and Portugal – serve as platforms for local growth in each location. They do this by supporting entrepreneurs, integrating cultural identity, and fostering loyalty through authentic engagement. This customer-centric, community-first approach is changing retail landscape.

“We’re invested in more than shopping centres. We’re invested in the communities they serve. The success of our centres is grounded in understanding local needs, and meeting and exceeding them,” says Laurence Rapp, CEO of Vukile Property Fund. “With a customer-first approach, we co-create retail spaces and experiences that genuinely reflect and serve their unique communities while celebrating local talent, culture, community and innovation. The Vukile Retail Academy is a tangible expression of that philosophy.”

A programme of proven impact

 Launched in 2022, the Vukile Retail Academy has already made measurable impact. The first intake of eight entrepreneurs received 1,035 sqm of retail space to trade from across four shopping centres, along with tailored business and operational support. Mentorship focused on developing a resilient business mindset, enhancing store operations and building customer engagement strategies

The results speak volumes. From the 2023 Dobsonville cohort, Fakizinto Concepts and Zanwabo Cakes became full-time tenants. In 2024, four businesses from Randburg Square – Lonja Beauty Studio, Edenvinne, Vero’s Cake and Jeleni & Phindi Art Studio – have also joined the formal tenant mix, underlining the Vukile Retail Academy’s role in long-term tenant development.

“We’re seeing dreams become sustainable businesses,” says Itumeleng Mothibeli, MD SA at Vukile. “At the heart of the Vukile Retail Academy is a belief in people and potential. This programme is about removing barriers, nurturing talent and actioning our deep commitment to building the next generation of retailers, who will shape the future of South African retail.”

A new shared-format concept

 This year, the Vukile Retail Academy introduces an emporium-style space at Daveyton Mall, bringing five small businesses under one roof. The shared space allows entrepreneurs to share costs, test products and grow visibility in an animated, high-footfall retail setting.

The not-to-be-missed up-and-coming brands in the new emporium, are:

• Seven Heartbeats: A cultural lifestyle brand blending contemporary fashion with traditional African design.
• Cossen: African-inspired fashion and footwear with live shoemaking experiences.
• Thesis Lifestyle: A Soweto-born streetwear brand celebrating township pride.
• GameOn.Africa: A tech-driven edutainment hub promoting digital learning and innovation.
• PeaPrido Elegance Events: A Daveyton-based events company delivering personalised, high-quality experiences.

Some of these businesses are expanding from existing markets or online platforms. Each comes with its own story, contributing fresh energy and relevance to the mall’s offering.

Daveyton Mall, first opened in 1993, is one of South Africa’s first township malls. It was recently upgraded and extended by Vukile and stands as a modern reflection of the colourful heritage of its community. The new design celebrates local culture through architectural features, murals and art installations. This culturally rich environment creates a powerful platform for a retail experience that truly belongs to its people.

Reflecting its role as a community anchor, the mall’s redevelopment included significant local participation, resulting in a retail centre that does more than serve the community; it reflects and empowers it. Its trailblazing new emporium of entrepreneurs extends this ethos.

Building a fresh retail ecosystem

 At Vukile, retail is about people before products. The Vukile Retail Academy reflects its longer-term ambition to help shape a retail sector that mirrors the depth and potential of South Africa’s entrepreneurial talent.

“This flagship initiative is rooted in our commitment to building a retail ecosystem where local talent thrives and communities feel seen, supported and proud. It’s about creating lasting partnerships for a better South Africa,” adds Rapp.

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Vukile Property Fund (JSE: VKE), the leading specialist retail REIT, reported a standout set of results for the financial year ended 31 March 2025, reflecting a transformative year of dealmaking, ongoing operational excellence, and decisive and disciplined capital deployment. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations (FFO) per share and increased its dividend per share (DPS) by 6%.

Vukile announced upgraded FY26 guidance, forecasting growth of at least 8% in both FFO per share and DPS.

Laurence Rapp, CEO of Vukile Property Fund, comments, “We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile’s strategy, expands its earnings base and positions the business for compounding future growth.”

It’s total property assets now exceed R50 billion, reflecting an ambitious yet tightly focused investment strategy. During the year, Vukile grasped a golden window of opportunity that expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe’s most resilient consumer economies. Now, 65% of the group’s assets, and an expected 60% of its net property income is derived offshore.

Vukile entered Portugal during the year through its 99.6% held Spanish subsidiary Castellana Properties. The fully-funded multi-asset entry capitalises on Portugal’s strong economic growth and fragmented retail property sector that is ripe for consolidation, mirroring opportunities seized in Spain.

Continuing its creative dealmaking, in Spain Vukile exited its investment in Lar España with a capital profit of €82 million, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8% thereby enhancing sustainable earnings.

Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal.

 “In South Africa, Vukile’s robust operating platform yet again delivered outstanding results,” notes Rapp.

Valued at R16.7 billion, Vukile’s defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remain exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. The total portfolio recorded trading density growth of 5.2% – with its township and rural portfolio outperforming at 6.7% – driven by Vukile’s shopper-first approach, which continues to boost footfall and sales. The portfolio’s cost-to-income ratio was 15.3% – its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains.

Vukile’s solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. Over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio’s energy needs. Vukile has identified a further 10.6MWp of solar projects for FY26 and is finalising the agreements for two wheeling projects totalling 2MWp.

Adding value to its South African portfolio through acquisitions and developments, Vukile’s R113 million redevelopment of Mall of Mthatha (formerly BT Ngebs), in which Vukile acquired a 50% stake in May 2024, has delivered strong early performance, with the vacancy rate dropping from 16% when acquired to just 2%. The highly accretive project is set for completion in September 2025. The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security.

Vukile’s well-established investment in Spain, together with its new investment in Portugal has clearly cemented Castellana’s position as a market leader, capitalising on the advantages of the region’s status as a European growth powerhouse.

The Economist ranked Spain as Europe’s top-performing economy in 2024, with GDP growth of 3.2% and forecasts of 2.3% in 2025. The country’s economic growth is fuelled by strong household spending. Disposable income rose by 8.7%, supported by higher salaries, employment and savings levels. Additionally, tourism hit a record €126 billion with 94 million visitors.

Portugal’s economy outperformed expectations with 1.9% growth in 2024, driven mainly by household consumption, with record-high employment levels, real wages increasing and high disposable income. Private consumption rose 3.2% in 2024. Growth is forecast at 2.3% in 2025. Like Spain, Portugal is benefiting from easing inflation, projected to fall to 2.3% in 2025.

Castellana’s R32.9 billion, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%. It achieved high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years. Excellent trading metrics featured across the portfolio, with footfall up 2.4% and sales increasing by 4.3%.

“Castellana’s on-the-ground presence and expertise has added substantial value to the Iberian portfolio. This year has been one of rapid growth in the region, and our priority is to crystalise potential in our newly acquired assets and deepen value within our existing footprint.” says Rapp.

Vukile’s balance sheet remains exceptionally strong, with a stable LTV of 40.95% and an increased ICR of 2.9-times. The REIT enters FY26 with a well-hedged balance sheet and minimal debt maturities of less than 2% of group debt in FY26, as well as a very healthy liquidity position, with cash and undrawn facilities of R4.6 billion.

Vukile has an AA_(ZA) corporate rating reaffirmed by GCR with a positive outlook. Fitch has awarded Castellana an international investment-grade credit rating of BBB- also with a positive outlook.  Over the year, Vukile increased its green and sustainability-link debt by 69% from R1.3 billion to R2.2 billion, aligning its funding strategy with its continued commitment to ESG goals.

Rapp concludes, “Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management. It is well placed to deliver sustainable real growth by maintaining operational excellence, advancing value-added projects within existing portfolios and pursuing further opportunities in our core markets. We are committed to our proven scalable consumer-led model to create value for all our stakeholders.”

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“As a centre of growth, we invest in our portfolio using deep local insight and data analytics that support our shoppers’ experience and retailers’ success,” says Laurence Rapp, CEO of Vukile Property Fund. “The transformation of Bedworth Centre is more than just a physical upgrade, it’s about creating an ecosystem that serves everyone in the value chain, from our investors to our retailers, from our customers to our broader stakeholder communities.”

The Bedworth Centre redevelopment combines enhanced aesthetics and amenities with meaningful upgrades to layout, access and security. Using proprietary customer analytics, the revamp was tailored to ensure the centre remains a cornerstone of convenience and connection for Bedworth Park, including the Vaal University of Technology (VUT) and North West University (NWU Vaal Campus), as well as the South East (SE) and South West (SW) suburbs, the greater Sharpeville, Bopelong and the surrounding growing population.

“At Vukile, our approach starts with understanding the communities we serve. By integrating data with deep local insight, we craft tenant mixes that resonate with the unique needs and aspirations of people in the area. The result is retail that is aligned with daily life. Our retail spaces don’t just exist in communities; they evolve with them,” says Itumeleng Mothibeli, MD SA at Vukile Property Fund.

At the heart of the redevelopment is the introduction of two national grocery anchors, Boxer and Shoprite, both of which opened in late 2024 adding tremendous variety and choice to the local retail experience. These additions, alongside an expanded and diversified retail offering, position Bedworth Centre as the dominant convenience retail hub in the area.

“Thriving retail centres uplift the communities they serve. They provide accessibility, dignity and economic opportunity. This redevelopment reaffirms our commitment to building vibrant, enjoyable spaces that resonate with and reflect their communities. With new anchors and a curated tenant mix, Bedworth Centre is sustainably positioned for the long-term,” adds Mothibeli.

Revamped retail with local relevance and national brands

The updated tenant lineup spans essential goods, services and aspirational retail. Shoppers now benefit from an enriched variety of food, fashion, homeware and lifestyle offerings all under one roof.

New additions to the centre include Shoprite, Boxer, Hungry Lion, Big Joe Pies, Fish & Chips Co, Factory 88, Jam Clothing, Bellama, Blooming Beauty, Pep Home, OK Furniture and Volpes.

A standout feature of the new retail mix is Pepkor Group’s Home.Tech.Sleep concept store, the second of its kind to open in South Africa. Spanning 1,570sqm, it is a one-stop destination for integrated home solutions.

Even more national brands opened their doors in early this year, coinciding with the official launch of the updated centre in April 2025, including Sportscene, Kreme Beauty Lounge, Cash Crusaders, Home Décor Villa, with Shoprite and Boxer Liquor expected to open soon

Integrated community convenience

Further elevating Bedworth Centre’s role in the local ecosystem is the addition of a SARS Client Service Centre, located adjacent to the main parking area. This public-private synergy brings critical government services closer to residents and enhances the centre’s appeal as a holistic service destination.

“The redevelopment of Bedworth Centre is a shining example of Vukile investing with intent,” concludes Rapp. “It’s how we drive performance in our portfolio, partner effectively with our retailers and contribute meaningfully to the communities we serve.”

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Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), delivered a strong pre-close trading update for its financial year ended 31 March 2025, underscoring its dealmaking dexterity, strategic expansion and robust operational delivery. Vukile confirmed it is on track to meet its full-year guidance of 2% to 4% growth in funds from operations (FFO) per share and 6% growth in dividends per share (DPS).

Reflecting strong business momentum and high-quality earnings, Vukile also provided preliminary guidance on FFO and dividend per share growth for FY26 of at least 6%, based on conservative assumptions and without anticipating any need for new equity capital.

The transformative year has been underpinned by strategic execution. Driven by disciplined dealmaking and decisive capital deployment, Vukile’s gross asset value now exceeds R50 billion.

Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile grew its asset base in Spain and Portugal by nearly 60%. It exited its investment in Lar España at an impressive profit of EUR82 million, swiftly redeploying capital to acquire the iconic Bonaire Shopping Centre in Spain’s Valencia province at a compelling cash-on-cash return of over 8%, avoiding cash drag and securing sustainable earnings from a top-quality asset.

Adding a new engine of growth to its strategy, Vukile entered Portugal with four high-quality retail acquisitions. A fifth deal is well advanced and already fully funded.

All-in-all, the Iberian portfolio grew around 60% over the 12 months, cementing Vukile’s dominant position across two of Europe’s strongest economies − Spain and Portugal. Approximately two-thirds of Vukile’s assets and 60% of earnings are now offshore.

In South Africa, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) in May 2024, where early turnaround performance has exceeded expectations. The mall’s vacancy rate has decreased dramatically from 18% to just 1.8%.

These assets were acquired at a favourable point in the cycle, expanding Vukile’s footprint and growing its Iberian portfolio with strategically aligned, high-performing assets that are delivering strong cash flows with further upside through targeted asset management.

“We’ve come through a phase of explosive growth. Now, we’re focused on integration, optimisation and crystallising value from these assets. Vukile remains open to opportunities but will prioritise deepening value within its current footprint, and for the time being we don’t expect to raise capital,” confirms Laurence Rapp, CEO of Vukile Property Fund.

Operational strength has stood out across Vukile’s portfolio of high-performance, strategically located shopping centres, with limited exposure to new competition and strong pricing power.

In South Africa, like-for-like net property income (NPI) grew 6.4%, vacancies remain below 2%, and 84% of rental reversions were positive or flat.  The portfolio has recorded growth in both sales and footfall. The cost-to-income ratio reduced to 15%, with ongoing progress in solar and water initiatives enhancing sustainability metrics and efficiencies.

In the Iberian portfolio, like-for-like NPI increased by almost 2% and with various value-add projects now complete, significant upward momentum can be expected in the year ahead. Vacancies in both portfolios remain below 2%. Positive rental reversions were a standout 23.6% in Spain and 6.15% in Portugal. Sales grew 4.3% in Spain and 6.7% in Portugal.

“With a well-hedged balance sheet, minimal near-term debt expiries of just 2% maturing in FY26 and strong liquidity, Vukile is closing FY25 in an exceptionally positive position,” says Rapp.

Vukile Property Fund will report results for the full year to 31 March 2025 on 17 June 2025.

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 The acquisition of the centre, considered a Top 10 shopping centre asset in Spain, was initially delayed due to torrential flash flooding in the Valencia Region in October 2024. As part of the centre’s reinstatement, Unibail-Rodamco-Westfield fully refurbished the ground floor’s common areas and retail units, with many retailers simultaneously taking the opportunity to upgrade their stores and introduce new concepts.

Bonaire Shopping Centre reopened to record footfalls on 13 February 2025, further confirming its position as the leading shopping centre in its region.

Laurence Rapp, CEO of Vukile Property Fund, comments: “We are thrilled to have secured this exceptional asset from Unibail-Rodamco-Westfield further cementing Castellana’s position as a leading player in the Iberian retail property market. This accretive deal is our biggest by value to date and furthers our growth in Spain with a market-leading institutional grade asset.”

 The acquisition is being funded with the EUR200 million proceeds from the sale of Castellana’s stake in Lar España.

Rapp adds, “We made a tremendous profit of around EUR80 million on the Lar España trade and to redeploy the proceeds so quickly into such a high-quality asset and ensure no cash leakage is testament to our team’s deal making expertise.”

Further emphasising the transformational year of growth for Vukile, Rapp highlights Castellana’s strategic expansion into Portugal, where it has acquired four shopping centres since September 2024, funded with proceeds from the R1.5 billion raised by Vukile in September 2024.

These transactions are testament to Vukile’s and Castellana’s entrepreneurial and agile edge in the Iberian retail market, where local market knowledge, speed and creative deal-making are critical to success.

As part of the acquisition of Bonaire, Castellana has received an 18-month net operating income (NOI) guarantee. The centre currently has ample parking readily available, and its underground car park is expected to be reinstated and reopen by mid-2025 at no additional cost to Castellana.

Bonaire Shopping Centre is in Valencia, the third largest city, fourth most popular tourist region and third most populous residential area in Spain, boasting consumers with incomes well above the national average. Valencia has attracted the third highest level of investment in Spain over the past five years. It enjoys exceptional links to local and international markets, with the second largest port in Spain and the fifth largest in Europe. It connects to all major cities in Spain via Spanish high-speed AVE trains, which operate on the longest high-speed network in Europe. Furthermore, the Valencia Airport is located very close to the centre.

As the leading and top-performing shopping and leisure destination in Valencian province, the open-air centre has a proven trading track record with market-leading, above-market sales density and footfall averages. It boasts an impressive 99% long-term occupancy rate with a diversified mix of highly attractive brands, appealing to customers from across the entire region. Tenants include six Inditex fashion brands including Zara, as well as Primark, JD Sports, Cinesa, Mango, H&M and Fnac, to name a few. Bonaire also features a top-floor leisure, food and beverage area that was refurbished in 2016. The 138-store, 55,800sqm gross lettable area (GLA) centre acquired by Castellana is linked to an Alcampo hypermarket, which takes the total property to 78,000sqm. Further, Bonaire is part of a powerful retail node of 135,200sqm and 151 stores, including Leroy Merlin, Decathlon and leasing Scandinavian furniture retailer JYSK.

For Castellana, the transaction further strengthens its already strong portfolio of dominant shopping centres in Iberian regional cities and expands its footprint on Spain’s east coast. Vukile and Castellana excel at consistently adding value to high-quality retail assets, and the 10,000sqm of immediate expansion potential at Bonaire creates ideal strategic alignment with Castellana’s on-the-ground asset management and development expertise. Bonaire also aligns with its ESG goals, having earned an “outstanding” BREEAM score for management and an A-grade EPC certificate.

For Vukile, the deal scales up its Spanish investment. From a zero base in July 2017, following the Bonaire Shopping Centre acquisition approximately two-thirds of Vukile’s assets will be offshore in the Iberian Peninsula, in the high-growth, attractive markets of Portugal and Spain.

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According to the SA REIT Association December and January Chart Books, the sector is expected to deliver strong income returns of c.8%-9%.

Itumeleng Mothibeli, Chairperson of the SA REIT Research Committee and Managing Director of Vukile Property Fund Southern Africa commented:

“With the economic recovery, lower interest rates and robust demand for commercial property—particularly in the retail,  industrial and logistics sectors – we anticipate growth in the REIT sector this year. Our members are consistently reporting improvements in property fundamentals and the quality of earnings.”

“Township, urban and rural malls will continue to show resilience, while demand for logistics and warehousing space will remain strong. In the office sector, vacancies are falling as demand increases for smaller, high-quality spaces with features like co-working spaces, wellness facilities and smart technology are a draw card for tenants.”

Mothibeli said the defensive qualities of South African REITs such as their inflation protection, mandatory income distributions, liquidity and diversification advantages make them essential for building resilient portfolios. The predictability of real estate leases and rental income gives REITs a defensive edge, enabling more accurate earnings forecasts and lower share price volatility. REIT dividends are known to hedge against inflation, as asset values and rental rates often rise ahead of inflation.

“The cumulative 75-basis point interest rate cut will support sector growth, reduce borrowing and debt repayment costs for REITs, increase property values and returns for investors and boost distributions,” said Mothibeli.  

Despite the economy’s prolonged stagnation in 2024, Nedbank forecasts modest growth of 1.4% in 2025 and 1.8% in 2026. However, the bank expects fewer interest rates this year.

Nicky Weimar, Nedbank Group Economist commented: “Growth will be driven mainly by firmer consumer spending, supported by rising real incomes, subdued inflation, modestly lower interest rates and the withdrawals of contractional savings through the two-pot retirement fund system.

“Commercial property mortgages are recovering while home loans continue to slow. Nedbank expected both the commercial and residential property markets to improve moderately as the year progresses.”

Weimar stressed that the rapidly changing global landscape would probably deliver stickier global inflation and fewer US interest rate cuts, pointing to high-for-longer risk-free rates and continued US dollar strength. Against this backdrop, the South African Reserve Bank is likely to remain cautious.

Given upside risks to the local inflation outlook from a vulnerable rand, elevated US interest rates and the threat of global trade war, the current rate-cutting cycle is likely to be shallow. Nedbank forecasts only one more rate cut of 25 basis points in July. Consequently, monetary policy easing is unlikely to provide a significant boost to the property market. Instead, moderately faster economic growth in response to easing structural constraints and stronger consumer demand will support a reasonable recovery in the property market, said Weimar.

Gary Garrett, Managing Executive of Property Finance at Nedbank CIB commented: “We saw a significant increase in activity in the sector in the second half of 2024 which we attribute to the stability created by the Government of National Unity (GNU) as well as real evidence of interest rate cuts. We believe that this momentum will continue in 2025 should current economic conditions hold.”

The listed property sector outperformed other asset classes, including equities and bonds in 2024, further highlighting the positive sentiment and investor confidence in the sector, Garrett added.

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