Castellana Properties Socimi, S.A. (BME:YCPS) agreed to acquire 21.7% stake in Lar España Real Estate SOCIMI, S.A. (BME:LRE) from LVS II Lux XII S.à r.l. for €97.1 million on January 27, 2022. Castellana will purchase 18.2 million Lar Espana shares at price of €5.35 per share. Castellana will fund the purchase out of €15 million of available cash and the balance through a shareholder loan of €75 million from Vukile, which will be capitalized before the end of the current financial year ending 31 March 2022 at a price equal to the NAV per share of Castellana.

The closing date of the sale and purchase of the subject shares will be January 26, 2022. Vukile forecasts a positive impact on FFO per Vukile share for FY2022 as a result of the transaction and a material positive total return impact in the medium to long-term.