Vukile Property Fund (VKE) Status update summary

Capital rotation and asset transactions

• Sold Spanish retail park portfolio for EUR 279 million at a 7.1% yield, generating a 13% uplift in net asset value under ownership, with management contract retained for five years and EUR 1.2 million annual fee income for Castellana.

• Proceeds from the sale, capital raise, and cash resources are being redeployed into new assets, notably the Berceo shopping center in northern Spain, acquired for EUR 108 million (reported as EUR 101 million in some sources) at a 7% yield.

• Additional Spanish and South African transactions are at advanced stages, all pre-funded, with no need for further equity raising.

• Asset rotation strategy aims for accretion, with no income slippage expected from these deals and a focus on higher-value, growth-oriented retail assets in Spain and Portugal.

• South African asset rotation includes the acquisition of 50% of Chatsworth Centre and the sale of the Midrand Ulwazi Building.

Strategic investment in Pradera

• Acquired a 35% stake in Pradera, a pan-European retail asset manager with EUR 5 billion AUM and presence in 10 countries.

• Pradera's management team also invested, aligning interests; the deal is not financially material but is strategically significant.

• The partnership provides access to local expertise and de-risks potential expansion into new European markets.

• Pradera and Castellana together create a leading intellectual capital base for retail in Europe.

Market outlook and pipeline

• Strong institutional demand for retail parks in Europe is driving yield compression, with Spanish retail yields trending down to 6.4%-7%.

• Current active pipeline includes three advanced transactions in Spain and one in South Africa, all fully funded.

• No dilution expected from new deals; all are expected to be accretive.

• Appetite remains strong for further acquisitions in both Spain and South Africa, but limited stock is available in SA.

• New shopping centre development in Spain is constrained, supporting asset values and growth prospects.