Tag Archives: V&A Waterfront

​Expansion plans for V&A Waterfront

Luxury brands including Dolce & Gabbana and Louis Vuitton are poised to anchor a new retail expansion at Cape Town’s V&A Waterfront, Bloomberg reports.

According to V&A Waterfront CEO, David Green, the destination plans to triple its luxury retail space to nearly 4,000 square meters in a dedicated wing, reflecting the growing demand for high-end goods in South Africa’s legislative capital.

This development aims to consolidate luxury retailers under one roof, with store spaces for Dolce & Gabbana, Louis Vuitton, and Gucci set to double.​

The R207 million project is expected to introduce up to six new brands, including Versace by Capri Holdings, alongside existing offerings like Burberry Group and MaXhosa Africa.

This expansion positions the V&A Waterfront to better compete with Johannesburg’s luxury retail hub, The Diamond Walk in Sandton City.​

Africa’s luxury market is burgeoning, driven by robust economic growth, an expanding middle class, and increasing consumer spending power, Bloomberg noted.

South Africa, as the continent’s wealthiest nation, leads in designer goods consumption. Trading density for luxury brands in malls increased by 171% over the five years through June 2024, as per Clur’s Shopping Centre Index, which monitors 4.1 million square meters of prime retail space in South Africa and neighbouring Namibia.​

Construction of the V&A’s luxury development is underway, with phased openings scheduled from November 2025 through Easter 2026. The V&A reported record retail sales of R1.4 billion in December 2024, a nearly 17% increase from the previous year, with luxury items comprising about 7% of total sales.​

The V&A Waterfront is jointly owned by the Public Investment Corporation and Growthpoint Properties Ltd., South Africa’s largest listed real estate firm. Plans are also in motion for a R20 billion expansion of the adjacent Granger Bay precinct, with land reclamation approvals expected from Cape Town authorities in the first half of 2025.

Growthpoint interims boosted by V&A Waterfront

Growthpoint Properties has announced its financial results for the six months ending 31 December 2024 (HY25), showcasing solid growth across its South African and international portfolios, with a notable improvement in key financial metrics.

The group’s distributable income per share (DIPS) increased by 3.9%, reaching 74.0 cents per share (HY24: 71.2 cps).

This growth was primarily driven by enhanced performance in the South African portfolio, including like-for-like rental growth, improved expense efficiencies, and lower vacancies in the logistics and industrial sectors.

–Net Property Income: South Africa’s net property income rose by 6.2% to R2.9 billion (HY24: R2.7 billion), reflecting continued improvements in property operations and occupancy rates.
–Dividend Growth: The company declared a 3.7% increase in its interim dividend, amounting to 61.0 cents per share.
–Loan to Value (LTV): Growthpoint’s SA REIT loan-to-value ratio improved to 40.8%, compared to 42.3% at the end of FY24.

The iconic V&A Waterfront delivered a strong 16.6% like-for-like increase in net property income, benefiting from the boost in both domestic and international tourism.

Growthpoint’s 50% share of distributable income from the V&A increased by 4.5%, to R398.2 million.

The property group said it has significantly reduced its exposure to underperforming sectors, including office properties, and is actively exiting deteriorating business districts.

During the period, the company disposed of 12 properties for R589.4 million, including two office properties, which reflects a profit of R7.4 million on the book value.

Over the last decade, Growthpoint has sold a total of R5.2 billion worth of B and C-grade office assets, with continued focus on the logistics sector.

The logistics and industrial sectors have performed particularly well, with vacancies decreasing to 3.5%, the lowest since 2018. Growthpoint’s commitment to modern logistics warehouses has also contributed to positive rent reversions of 0.9%, alongside in-force escalations of 7.4%.

The group has prioritised reducing its reliance on the national grid and addressing water supply challenges. The company completed R117.3 million in solar installations during the period, bringing the total installed solar capacity to 52.5 MWp.

Furthermore, Growthpoint has entered into a landmark power purchase agreement (PPA) with Etana Energy for the acquisition of 195 GWh of renewable energy annually, with phased implementation starting in FY26.

Despite ongoing global economic challenges, Growthpoint said it remains optimistic about its future performance, supported by its focus on high-growth sectors, including logistics and the Western Cape region.

The company anticipates further stabilisation in the South African office sector, particularly in Cape Town and Umhlanga Ridge, while the logistics sector is expected to outperform other property types.

The V&A Waterfront, which has benefitted from the tourism resurgence, is expected to continue its growth trajectory, though redevelopments in key areas may temporarily affect performance in FY25.

The group’s share price responded positively to the results on Tuesday, adding 3.5% in afternoon trade, with the group up 6% in the year-to-date and up nearly 17% over the past 52 weeks.

This iconic South African retail space achieved R10 billion in sales in 2024

The V&A Waterfront enjoyed an exceptional December, attracting over 3 million visitors and achieving record retail sales of nearly R1.4 billion.

“The December period is always special at the V&A Waterfront, with locals and tourists coming to experience the best of what we have to offer, and this year was no exception,” said David Green, CEOr at the V&A Waterfront.

“With over 3 million visitors for the month and 25 million visitors for the year, this reflects the incredible appeal of the Waterfront as a destination where people come to connect, celebrate, and create memories.”

Co-owned by Growthpoint Properties and the Government Employees Pension Fund, the V&A Waterfront has active projects worth R4.5 billion underway over the next two years. Funding for these developments is being arranged through debt providers on the Waterfront’s balance sheet.

The upcoming projects include a new hotel and residential units, alongside the redevelopment of the Table Bay Hotel and a section of the mall.

Approximately R2 billion of the investment will be directed toward two internationally branded hotels at the V&A Waterfront, including a R1 billion transformation of the iconic Table Bay Hotel into an InterContinental Hotels Group (IHG) property.

The reimagined hotel will offer 306 rooms, including 45 newly designed guest suites. Scheduled to open in 2025, the InterContinental Table Bay Cape Town aims to both preserve the hotel’s legacy and usher in a new era of luxury hospitality in the region. The hotel will be managed by Sun International under a hotel management agreement.

In addition to the Table Bay redevelopment, the development includes a new hotel at Quay 7 for approximately R1 billion, around 100 residential units worth approximately R750 million, and an upgrade of the luxury section of the mall, totalling just over R100 million.

A new parking facility will be added for R300 million, and a new heliport, costing about R150 million, has already been completed.

Significant capital is also being invested in bulk infrastructure at the site to support the new developments, which will span just under 100,000 square metres.

The V&A Waterfront also expanded its retail offering with the opening of the repurposed Union Castle Building just in time for the festive season.

This welcomed high-profile tenants such as Marble Restaurant, Nike, Thule, and Wedgewood. These new additions, alongside other tenant mix enhancements—including the enlarged and relocated Yuppiechef and Mr Price outlets—helped drive nearly double-digit sales growth.

More than R10 billion was spent within the precinct in 2024.

“During the year, we saw sales growth across most categories, but some sectors stood out. Our enhanced restaurant offering and Food Markets drove significant Food and Beverage revenue,” Green noted.

Increased international tourism helped boost performances at the revamped Watershed, Curios, and jewellery sectors. Athleisure and outdoor wear continue to see growing demand, and Health & Beauty remains a perennial favourite. In fashion, the retail space is seeing stronger performances from independent and differentiated stores.

“Looking ahead, our ongoing investment plans will ensure that the V&A Waterfront continues to innovate and evolve, keeping South Africa’s tourism offering at the forefront of global travel trends, for both local and international visitors to enjoy,” Green concluded.