Tag Archives: Growthpoint

V&A Waterfront dancing to different music in SA retail space

The V&A Waterfront delivered a 12.7% increase in like-for-like net property income, helping Growthpoint Properties exceed expectations in its latest financial results.

Growthpoint Properties, a JSE-listed Real Estate Investment Trust (REIT), holds property assets valued at R155.8 billion, including a 50% stake in the V&A Waterfront.

The V&A’s growth was driven by increased tourism benefiting retail, hotels, and attractions, a stronger cruise season, and the completion of the Union Castle building. Despite higher net finance costs on external borrowings, Growthpoint’s 50% share of distributable income rose 4.5% to R810.5 million.

Situated on 123 hectares around Cape Town’s historic Victoria and Alfred basin, the V&A Waterfront comprises retail, office, fishing, logistics, industrial, hotel, residential, and undeveloped bulk properties.

The REIT’s holding interest in the V&A Waterfront represents R13.3 billion — about 10% of its total asset base — and contributed 16.3% to distributable income per share (DIPS).

Net property income rose 10.4%, even as the Lux Mall and The Table Bay Hotel underwent value-adding redevelopment.

In April, Growthpoint announced a R207 million expansion of the Victoria Wharf Shopping Centre, adding nearly 4,000 m² of luxury retail space anchored by brands like Dolce & Gabbana, Louis Vuitton, and Gucci.

Growth was supported by a full year of trading from new hotel operations and the income activation of the Union Castle building in December 2024, alongside a robust cruise season. Vacancy remained negligible at 0.3%.

Net property income from operating businesses, which use a revenue-sharing model rather than traditional rental, rose to 16.0% of NPI from 10.0% in FY24. The V&A now operates three hotels with nearly 600 rooms, including standout growth from the Radisson Red Hotel.

Tourism increased, with a 6.0% rise in international visitors arriving at Cape Town International Airport in FY25, boosting turnover rentals across hotels, attractions, and retail. The V&A attracted 24 million visitors.

Retail sales rose 5.8% to over R10 billion, with further growth expected as the new 3,759 m² Lux Mall phases in after completion in December 2025. Office NPI increased 17.0%, with like-for-like growth of 10.0%, driven by strong demand, near-zero vacancy, high renewal rates, and modest rental growth.

Marine and industrial sectors saw increases in cruise visits, casual berthing, and charter boat activity. Hotels, residential, and leisure NPI rose 10.0%, with like-for-like growth of 27.0%. Hotels reported a 23.8% increase in average daily rates, steady occupancy, and higher revenue per available room.

A new luxury hotel with branded residences is set to launch mid-2026, while residential vacancies remain low. Construction on new apartments at 5 Dock Road began this year, targeting completion by December 2025.

In South Africa, Growthpoint manages a diversified core portfolio valued at R66.7 billion, representing 50.1% of its total assets and contributing 51.2% of DIPS.

The portfolio increased 2.2% or R1.4 billion, driven by disciplined capital recycling, including R2.5 billion in asset sales fuelling reinvestment and targeted development.

Growthpoint exceeded the top end of its guidance for the year ended June 2025, reporting distributable income per share (DIPS) of 146.3 cents — up 3.1% – and total dividends per share (DPS) of 124.3 cents, a 6.1% increase.

This return to growth arrived a full year earlier than expected, it said. Initially forecasting earnings contraction of 2.0% to 5.0%, Growthpoint upgraded guidance mid-year to 1.0% to 3.0% growth, then further to between 2.0% and 3.0%.

Norbert Sasse, Group CEO, said: “This strong set of results shows Growthpoint has done well to exceed expectations and deliver solid earnings growth while executing our strategic priorities. The progress made in further strengthening our SA portfolio is evident in its improved performance.

“The V&A Waterfront once again delivered stand-out results. Streamlining our international investments has simplified our capital structure and equity story, and disciplined treasury management kept finance costs below expectations.”

Sasse will hand over the CEO role to current SA CEO Estienne de Klerk on 1 July 2026, leading the business for one more financial year.

Looking ahead, Growthpoint will maintain its payout ratio at 87.5% for FY26, reflecting its strong balance sheet, effective strategy execution, disciplined capital management, and positive momentum in SA property values. Decreasing interest rates and a growing property cycle will likely add further tailwinds.

Growthpoint announces new CEO and CFO

Growthpoint Properties, South Africa’s largest primary JSE-listed REIT, has announced a major leadership transition with the appointment of Estienne de Klerk as group chief executive officer (GCEO), effective 1 July 2026, and José Snyders as group chief financial officer (GCFO), effective 1 January 2026.

The company aims to align its leadership structure with the start of the 2027 financial year and position itself for future growth.

De Klerk currently serves as CEO of Growthpoint Properties South Africa and brings three decades of experience in banking and listed property to the role.

A chartered accountant and Harvard Business School alumnus, he also holds BCom and BCom Honours degrees in Industrial Psychology, Marketing, and Accountancy from the University of Johannesburg, along with certification as a Master Practitioner in Real Estate.

De Klerk has been a central figure in the transformation of South Africa’s commercial property sector, having served as Chair of the SA REIT Association, Past President of the SA Property Owners Association, and founder of the Property Industry Group, which coordinated sector-wide support during the Covid-19 pandemic.

He currently serves on the boards of Growthpoint’s key investments, including V&A Waterfront Holdings and Growthpoint Properties Australia.

He will take over the Group CEO role from Norbert Sasse, who has led Growthpoint since 2008 and will remain in the position until 30 June 2026.

Sasse will continue in an executive capacity until 31 December 2026 to support a smooth transition.

In South Africa, Growthpoint’s landmark assets include:

  • V&A Waterfront (Cape Town) – a premier mixed-use development and tourism hub
  • Discovery Head Office (Sandton)
  • The Woodlands Office Park (Johannesburg)
  • Brooklyn Mall (Pretoria)

Meanwhile, José Snyders, current CEO of Liberty Two Degrees (L2D), will step in as Growthpoint’s GCFO from January 2026.

Snyders is a chartered accountant with two honours degrees specialising in financial analysis and financial accounting.

He brings over 22 years’ experience across financial services, investment banking, and listed real estate, with a strong track record in capital markets and operational strategy.

Growthpoint’s current group financial director, Gerald Völkel, will remain in the role until 31 March 2026, finalising the FY26 half-year results and ensuring a structured handover to Snyders.

How student accommodation is driving property development in SA

With South Africa facing a critical shortage in student housing, the need for innovative property development has never been more urgent. Beyond meeting demand, student accommodation is unlocking new opportunities—for investors, developers, and the youth.

From job creation to urban regeneration and skills development, this growing sector is proving to be a powerful engine for economic inclusion.

Despite global unemployment reaching a historic low of 4.9% in early 2025, youth unemployment remains a troubling global issue.

According to the International Labour Organisation (ILO), around 12% of young people aged 15 to 24 – nearly 65 million individuals – are unemployed, with women disproportionately affected.

In South Africa, the challenge is even more severe. The latest Quarterly Labour Force Survey by Statistics South Africa reports a youth unemployment rate of 46.1% in Q1 2025. For those aged 15–24, the figure climbs to 62.4%, while individuals aged 25–34 face a 40.4% rate.

These statistics reflect an economic crisis, and deeper social emergency that touches nearly every facet of young people’s lives.

The Gauteng Partnership Fund (GPF) says it is helping to alleviate some of these systemic challenges by investing in student accommodation and rental housing. The fund is designed to support entities that provide affordable, well-managed housing solutions, opening doors for youth participation in the property development sector.

With South Africa’s population now exceeding 63 million – and Gauteng alone accounting for nearly 16 million residents – demand for flexible and affordable urban housing continues to rise.

The GPF said it has responded by facilitating the development of over 20,000 homes across Johannesburg and Tshwane, contributing to the creation of approximately 130,000 job opportunities, thereby bolstering both the housing market and the broader economy.

Key student accommodation projects include:

-57 on Bok and Residence Viera in Johannesburg, delivering 378 beds near the University of Johannesburg and Wits University.
-Haborona Student Rez in Pretoria Gardens, offering 308 beds close to Tshwane University of Technology.
-Winchester Heights in Winchester Hills, adding 224 beds for students from the University of Johannesburg’s Soweto campus.

The GPF said its funding initiatives have already opened doors for developers – including historically disadvantaged individuals – to contribute meaningfully to the housing sector.

“While the goal of achieving a decreased number in youth unemployment may seem aspirational, it is certainly one that we should be striving for daily- If we work together, towards a common objective, to see such an outcome achieved,” it said.

In South Africa, the demand for student housing continues to outpace supply, creating major challenges for higher education institutions and the students they serve.

In his State of the Nation Address, President Cyril Ramaphosa highlighted the government’s efforts to address infrastructure gaps:

“Through the Infrastructure Fund, 12 blended finance projects worth nearly R38 billion have been approved in the last year. These are projects in water and sanitation, student accommodation, transport, health and energy.”

According to the International Finance Corporation, a member of the World Bank Group, the shortfall in student accommodation is expected to reach 780,000 beds by 2025.

This growing deficit underscores the critical need for investment in housing near universities and educational institutions—an opportunity increasingly attractive to investors seeking reliable yields and long-term capital growth.

The Department of Higher Education and Training (DHET), in collaboration with the National Student Financial Aid Scheme (NSFAS), is working to close the gap through partnerships with private developers and by expanding its own infrastructure initiatives.

The Development Bank of Southern Africa (DBSA), a key development finance institution, is playing an active role in helping the sector expand bed capacity.

“The department has a student housing infrastructure programme that seeks to build 300,000 beds by 2032. The programme is managed by the Development Bank of Southern Africa. It is currently in phase two of implementation. This intervention will address the supply-demand imbalances,” said Dr Marcia Socikwa, the Deputy Director-General for Universities at DHET.

Private sector involvement is also accelerating. Growthpoint Properties, South Africa’s leading REIT, has established Growthpoint Student Accommodation REIT, a dedicated vehicle for student housing investments.

The REIT had injected R1.5 billion into the sector by 2024, a mere two years after its launch, adding 4,000 new student beds and building a strong pipeline for future projects. By 2024, its portfolio was valued at R3.5 billion, spanning 12 residences with 9,000 beds across Cape Town, Johannesburg, and Pretoria. Growthpoint expected to expand its offering to 10,400 beds for the 2025 academic year, including sites in KZN.

As the student population continues to grow, bridging the accommodation gap is essential – not only to support academic success but to stimulate economic activity and urban development around learning institutions.

Africa’s richest square mile sees surge in activity

The Olympus Sandton residential and retail development has achieved R940 million in sales within days of launching its luxury apartments at the end of last month.

By the end of the sales launch weekend, 295 apartments were sold, according to its developer and real estate investment trust (REIT), Growthpoint Properties. In collaboration with Tricolt, a developer of high-end residential projects, Olympus Sandton is a prime addition to the Sandton Summit.

This area, anchored by Discovery’s iconic head office, is set to become South Africa’s premier walkable mixed-use precinct. Olympus Sandton’s two-tower, 512-apartment development along Rivonia Road is poised to redefine fine living in Sandton.

The first 24-storey tower, The Athena, is nearing complete sell-out, with 227 of its 288 apartments already secured by eager buyers. In response to high demand, Tricolt has launched sales for the second tower, The Apollo. The first 68 of its 224 apartments were quickly snapped up.

Olympus Sandton offers premium living options, with apartments ranging from R1.49 million to R7.2 million for studios and one- and two-bedroom units, while penthouses are priced between R14 million and R45 million.

The development’s prime location in the Sandton Summit, with views of Johannesburg from The Athena’s 24th-floor tower, has been a key draw for buyers. Additional attractions include elevated dining options by Marble Hospitality Group and a curated grocery experience at Pantry by Marble.

The development also features eco-friendly designs, reimagining green luxury and offering sustainable, smart living.

In addition to Olympus Sandton’s success, Sandton is witnessing a broader surge in high-end hospitality activity. The Radisson Blu Gautrain Hotel is undergoing a significant renovation including upgraded wooden flooring, stone countertops, local artworks, and high-tech features like smart TVs and USB ports.

Meanwhile, the Hilton Sandton hotel underwent a complete rebranding and refurbishment in 2024, transitioning into the first NH Collection property in South Africa through a partnership with The Cavaleros Group and Minor Hotels.

Finally, the Hampton by Hilton, a 158-room hotel in Grayston Square, Sandton, opened its doors in February, offering a comfortable option for travellers in the heart of the city.