Growthpoint Properties is edging closer to a six-year high after notching up its strongest year on the JSE since 2005, creating billions of rand in shareholder value.
This is as investors warm up to the group’s aggressive push into renewable energy, which is now supplying some of its buildings.
The market has also taken note of the group’s investment in the Cape Winelands Airport, which is seen as a long-term growth lever.
Growthpoint ended 2025 with its share price up 37%.
The office sector is also showing signs of stabilising. The latest South African Property Owners Association (Sapoa) report shows Sandton, where Growthpoint holds most of its office portfolio, has a vacancy rate of 15.5%.
While this remains above the 35-year average of 12%, it is a notable improvement on the 2022 peak of 21.2%, suggesting the group’s strategy to cut vacancies is starting to pay off.
Vacancies in the node are now broadly in line with other decentralised Joburg precincts, indicating a gradual recovery in one of the country’s most important office markets.
Growthpoint SA CEO Estienne de Klerk last year described the office sector as the most challenging asset class to trade but one with strong upside potential.
“The biggest pain is in the B- and C-grade segment. But if you look at the markets we play in — Cape Town and Durban — they’re incredibly strong,” he said, noting the office class is well positioned to outperform other commercial property sectors in terms of valuation.
Meanwhile, the group’s coastal office properties continue to outperform the rest of the portfolio, driven by healthier supply and demand dynamics in these markets. Vacancies in KwaZulu-Natal remain exceptionally low, at less than 1%, while the Western Cape has also seen steady improvement.
On renewable energy, Growthpoint is making headway. Its e‑CO₂ initiative acquired a 30% stake in the R390m Boston Hydroelectric Plant, supplying 24/7 clean energy to 10 flagship Sandton offices.
The group also uses renewable energy certificates (RECs) to track and claim the environmental benefits of renewable power, enabling corporates such as Nedbank to offset part of their carbon footprint across 26 leased branches.
These developments have boosted investor confidence, underlining that Growthpoint is on a clear growth trajectory.
The group has also broken ground on a R26m pedestrian bridge linking its flagship office development, The Place at 1 Sandton Drive, directly to Sandton City — a move set to improve connectivity and make its offices more attractive to tenants and investors.
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