VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE NSX share code: VKN
ISIN: ZAE000180865
Bond company code: VKEI
(Granted REIT status with the JSE)
(“Vukile” or the “Company”)


FESTIVE SEASON TRADING AND TRANSACTION UPDATE



Vukile's South African and Iberian retail property portfolios delivered impressive increases in performance in November
and December 2024, signalling a successful Black Friday and holiday trading period.

SOUTH AFRICAN PORTFOLIO

The robust trade of our assets and the vibrant demand from both shoppers and retailers for our shopping centres,
particularly in the township and rural markets, remains encouraging. These impressive trading figures bode well for
income and valuation growth.

Turnover
Highlighting a positive trend in festive trading, the South African Portfolio achieved a strong 6.1% growth in trading
density during the combined November and December 2024 period, compared to the same months in 2023. This
continues the portfolio’s positive annualised trading density momentum, which was 2.4% in March 2024 and 4.2% in
September 2024. To date, FY25 has continued to show improved and sustained growth as anticipated, driven by an
improved macroeconomic environment, governmental reforms on electricity and pension funds, and continued positive
sentiment following the formation of the government of national unity.

During the two-month period, Township shopping centres were the best performing portfolio segment with trading
density growth of 9.6%. Rural and urban centres delivered trading density growth of 5.9% and 4.6%, respectively,
further highlighting the strong festive shopping demand within the communities we serve.

Retail categories with the most significant turnover growth were Unisex Wear (+7.7%), Groceries (+7.2%), Fast Food
(+6.3%) and Home Furnishing (+6.0%), which all recorded substantial, sustained growth. These increases demonstrate
strategically sound category exposure particularly in the non-discretionary segments of the market.

Footfall
Shopper visits in November 2024 increased by 5% compared to November 2023, reflecting stronger Black Friday trade
over the month. December 2024 footfall remained consistent with the same period last year.

IBERIAN PORTFOLIO (Castellana Properties)

The trading activity within the portfolio during November and December 2024 underscores the robust growth outlook
for Spain and Portugal, primarily fuelled by private consumption. The projections for 2025 remain pleasingly positive,
buoyed by strong employment figures, healthy savings, and manageable inflation. These factors are likely to continue
driving interest rate cuts, thereby enhancing consumer spending power.
Spain

Turnover
Sales rose by 4.9% in November 2024 compared to November 2023, with all retail segments experiencing growth.
Notably, the Leisure sector jumped by 21.1%, Food & Beverage climbed by 12.2%, and Health & Beauty saw a 7.3%
rise.

December sales rose by 4.8%, with Homeware leading at 9.4%, followed by Leisure at 7.8%, and Sports & Adventure
at 5.6%.

Footfall
In Spain, shopper visits surged by 9.7% in November 2024 compared to the previous November, with a remarkable
17.0% increase during Black Friday Week. On Black Friday itself, Castellana’s Spanish shopping centres saw a 10.8%
uptick in visits.

December 2024 footfall in the Spanish portfolio grew by 2.4% year-on-year, while the Christmas period (from
1 December 2024 to 6 January 2025) saw a 2.9% increase.

Portugal

Turnover
November sales climbed by 8.5% year-on-year, with all categories showing improvement. Household & Furniture led
with a 17.5% increase, Accessories rose by 12.9%, Electronics grew by 11%, and Fashion went up by 7.4%.

December sales increased by 2.8%. Leisure was the top performer with a 26.9% rise, followed by Household & Furniture
at 15.1%, Accessories at 5.8%, and Fashion at 5.0%.

Footfall
In Portugal, footfall increased by 4.6% in November 2024 compared to the previous year and surged by 15.9% over
Black Friday Week, with a noteworthy 21.2% rise on Black Friday. In December 2024, footfall in the Portuguese
portfolio rose by 2.1% compared to December 2023.

TRANSACTIONS UPDATE

Exclusive discussions to acquire Bonaire Shopping Centre

Castellana remains in exclusive discussions to acquire the largest shopping centre in Spain’s Valencia province, Bonaire
Shopping Centre, from multinational retail REIT Unibail-Rodamco-Westfield. The transaction’s closing was extended
due to the tragic 2024 floods in Spain. Unibail-Rodamco-Westfield is making good progress towards reinstating and
reopening the centre, which is expected mid-February 2025.

Disposal of stake in Lar España

On 27 December 2024, Castellana closed the sale of its 28.8% stake in Lar España, receiving proceeds of c. €200 million
after negotiating an improved cash offer of €8.30 per share, delivering a total profit of c. €108 million through a
combination of dividends received (c. €38 million) and capital appreciation (c. €70 million) and an IRR of c. 45% per
annum since January 2022 in ZAR terms.

Through the Lar España exit, Castellana has created an opportunity to recycle capital into other strategically aligned and
financially accretive growth opportunities with attractive yields and with significantly lower operational and deal
execution risk.
Alegro Sintra acquisition – 50/50 JV agreement with Nhood/Ceetrus

Continuing its expansion into Portugal, on 19 December 2024 Castellana acquired 50% of Alegro Sintra shopping centre
in Lisbon from Ceetrus, represented by their subsidiary Nhood, the real estate arm of ELO Group. This leading French
retail conglomerate owns Auchan, Leroy Merlin, Decathlon, and Kiabi, among other brands. The 50% stake was priced
at €46.5 million. The asset is valued at €180 million, representing a first-year net initial yield of 8.00%. This acquisition
was not categorizable in terms of the JSE Listings Requirements.

Alegro Sintra is a dominant, highly successful shopping centre located in the north of Lisbon, a dense and growing
residential node, with an annual footfall of 8.7 million visits and a total gross lettable area (GLA) of 58,000m2, including
a top-performing Pingo Doce supermarket. The centre is well anchored by a complete fashion offering, including Inditex
brands and Primark and a strong food court.

Castellana acquired 50% of the company that owns 42,255m2 of the shopping centre’s GLA, with the Pingo Doce
supermarket being owner-occupied and excluded from the transaction. The shopping centre offers strong and growing
income with opportunities to add value through strategic asset management initiatives together with our joint venture
partners.

Through this joint venture, Castellana is partnering with an institutional real estate business in Europe with strong
synergies, both in terms of on-the-ground know-how and presence in Portugal, as well as access to further opportunities
across Iberia and the rest of Europe.

27 January 2025



 JSE sponsor                                                     NSX sponsor

 Java Capital                                                    IJG Securities (Pty) Ltd