The consortium has increased its offer for the Spanish REIT from €8.10 to €8.30 per share, valuing the stake at approximately €199.9 mln.

This decision comes after Castellana Properties evaluated various strategic options. The company believes that this sale will maximize value for its shareholders. The proceeds from this transaction will be used to fuel future growth and explore new strategic opportunities.

Castellana Properties acquired a stake in Lar España in early 2022 and subsequently increased its ownership to 28.8%. The investment has yielded dividends of nearly €40 mln and a capital gain of €70 mln, representing an investment return of almost three times in under three years from the initial Lar España investment.

Alfonso Brunet, CEO of Castellana Properties, commented: ‘Thanks to our in-depth knowledge of the market, after these few years, we have made the strategic decision to sell our stake in the company and use the substantial proceeds to redeploy them to other more profitable and portfolio-enhancing opportunities. more profitable and portfolio-enhancing opportunities. This investment is one of the best performing transactions in the real estate sector in Spain.’

Laurence Rapp, CEO of Vukile Property Fund, added: ‘Our ability to identify mispriced assets, both listed and unlisted, and interpret market nuances through our on-the-ground asset management expertise, defined by profound knowledge of the property industry and retail specialisation, inform our capital allocation strategy. Our synthesis of corporate finance and deal-making skills, together with property asset management, underpins dexterity in underwriting retail assets.’

Owned by South Africa’s Vukile Property Fund, Castellana Properties has reaffirmed its commitment to expanding its presence in Spain and the Iberian Peninsula where it has a strong pipeline of opportunities. It is now Spain's fifth-largest retail property owner and is poised to become the third-largest by the end of 2024.