The upgrade reflects GCR’s confidence in Vukile’s core credit quality, bolstered by consistent property outperformance, strategic international diversification and sound capital management.
Vukile is a specialist retail REIT with a high-quality portfolio spanning three countries – South Africa as well as Spain and most recently Portugal through its 99.6% held Spanish subsidiary Castellana Properties, supported by blue-chip tenants and underpinned by strong operating fundamentals.
In its announcement, GCR highlighted that “Vukile’s property performance remains a key rating strength,” noting that its portfolio of non-metropolitan, convenience-oriented shopping centres and retail parks, which are primarily anchored by grocery and essential services tenants “has tended to outperform the overall property sector.”
“Vukile’s upgraded credit rating is a strong endorsement of our disciplined approach to capital, our high-quality assets and our long-term investment strategy. Our consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive,” says Laurence Rapp, CEO of Vukile Property Fund.
At its 31 March 2025 year end after expanding into Portugal, Vukile’s Iberian portfolio had grown to 65% of asset value, furthering the strategic benefits of its geographic diversification and exposure to multiple macroeconomic environments.
GCR also recognised Vukile’s “strong access to debt capital” and “sound liquidity profile”, underscoring its proactive balance sheet management. The rating agency cited the company’s demonstrated ability to access capital and its stable financial profile.
Continuing its proactive and transparent engagement with capital markets, Vukile will host its annual debt investor roadshow from 6–8 August 2025, ahead of a bond auction anticipated on 22 August 2025.