Sandton City owner Liberty Two Degrees (L2D) reported 4.9% growth in turnover, driven by a strong performance in its hospitality segment.
The boost came from higher event volumes at the Sandton Convention Centre, better hotel occupancy rates and the reopening of Sandton Towers, said the group in its results for the year to end-December.
Despite the challenging interest rate environment leading consumers to spend more cautiously and having fewer weekends compared with 2023, the Black Friday period boosted November’s performance. Overall, festive season sales for November and December combined grew 5.2% year on year.
The Melrose Arch precinct owner said it was seeing growing demand for space.
Its hospitality business saw a strong boost, with event volumes increasing and occupancy jumping to 71.7% from 65.5% last year. The outlook looks even more positive as Sandton Towers reopened in December 2024 and plans are under way to host the Group of Twenty delegation later this year.
“Our 2024 performance reflects our ability to navigate a complex operating environment while remaining steadfast in executing our growth strategy,” said L2D CEO José Snyders.
He said the group had maintained strong financial and operational metrics, despite economic headwinds, underscoring the quality of their assets and commitment to innovation.
The group reported portfolio occupancy at 94.4%, with future pre-lets boosting this to 94.7% (up from 94.2% in December 2023). The retail sector saw occupancy at 96.9%, rising to 97.3% when including pre-lets, while office occupancy improved to 86.1%, factoring in pre-lets.
L2D is a precinct-focused, retail-centred portfolio within Standard Bank Group’s Insurance and Asset Management business unit.
The group concluded new leasing deals totalling 44,074m² during the period, attracting high-profile brands such as Coricraft, Rochester, Puma, La Parada and JD Sports at Eastgate shopping centre, with UNIQ by Checkers in Sandton City and Midlands Mall.
Trading density for its retail portfolio reached R56,477/m², a 4.5% increase from 2023, surpassing the Clur quarter three 2024 all-centre benchmark of R41,539/m², which grew 2.9% year on year.
The group said that the stabilisation of electricity supply had helped lower operating costs but ongoing service delivery issues highlighted the need for continued investment in energy and water efficiency.
“L2D remains committed to its net zero journey, achieving a 5.9% reduction in nonrenewable energy usage and a 5.2% reduction in municipal water consumption, both exceeding targets. Additionally, the company attained an 89% waste diversion rate, earning net zero waste certification from the Green Building Council of SA,” the group said.
The group said it remained focused on maximising value from core assets by implementing effective leasing, fair cost recovery and boosting efficiency in property management.
“While we anticipate continued macroeconomic pressures in 2025, our disciplined approach to asset management, sustainability and operational excellence will ensure we remain competitive while delivering long-term income and capital growth for our stakeholders,” said Snyders.
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