South African property company adds three shopping malls in Portugal

Stephen Grootes speaks to Laurence Rapp, CEO of Vukile Property Fund.

Listen below.

The firm added three shopping centres in Portugal to its portfolio – two in Lisbon and one in Porto – through its subsidiary Castellana Properties. 

This after it issued R1 billion in new ordinary shares for acquisition growth.  

Much like its approach in South Africa, expanding into Europe is all about taking the needs of the local community into account. 

“Our whole business model is around trying to understand the needs of the very specific community that you are in. Making sure that the shopping centre meets those needs and really drives loyalty within that community.”

- Laurence Rapp, CEO – Vukile Property Fund

But do larger retailers still generate the foot traffic needed for malls, given the shift towards the e-commerce delivery space?

It all depends on your surrounding market, says Rapp.

“If you’re in an upper LSM market in South Africa it’s a bigger challenge than a low market which is township base where people are still coming to the centre quite frequently.”

- Laurence Rapp, CEO – Vukile Property Fund

“In the southern-European, more Mediterranean countries where the weather is better and people have more vibrant and outgoing personalities and lifestyle, they want to be in the shopping centre… it's about the experience you have there.”  

- Laurence Rapp, CEO – Vukile Property Fund

“Make sure you’ve got local people staffing your shopping centres, to really understand the nuance, have the deeper relationships and bring them in.”

- Laurence Rapp, CEO – Vukile Property Fund

Scroll up to the audio player to listen to the discussion