Growthpoint is sharpening its Western Cape investment focus at the V&A Waterfront, stepping up development spending after the City of Cape Town granted an additional 440,000m² of development rights.
The approval is tied to plans that will also deliver coastal protection infrastructure along a previously unprotected stretch of shoreline.
Beyond Paarl Mall, Growthpoint is doubling down on the V&A Waterfront, co-owned with the Government Employees Pension Fund (GEPF), with double-digit growth forecast alongside profit from 5 Dock Road apartments, launched in January, the group said in its results for the six months to end-December.
“The 440,000m² development approval secures our pipeline for the next 20 years. The masterplan is in place, with built-in protections, and the redevelopment represents an estimated R20bn,” Growthpoint CEO Estienne de Klerk said in a media briefing on Wednesday.
Construction is already underway at the V&A Waterfront on 161 new build-to-rent apartments, with doors set to open in 2027, while the InterContinental Table Bay Hotel refurbishment is on track for full completion by April and is expected to hit a stabilised yield by 2028.
“Responding to strong office market dynamics in the precinct, the V&A will start construction on a new 6,000m² premium-grade office building in the Portswood district in May. A new six-superyacht marina is also set to be operational at the V&A by October,” De Klerk said.
During the reporting period, the V&A’s profit was affected by higher net finance costs in line with Growthpoint’s funding strategy and the temporary closures of the Table Bay Hotel and Lux Mall for redevelopment. However, Growthpoint’s 50% share of distributable income rose 1.2% to R403.1m.
Read: Public consultation opens on R24bn V&A Waterfront land reclamation plan
The V&A reported a 1.9% increase in net property income compared with the first half of 2025, with like-for-like net property income up 8.7%. Growth was driven by strong footfall from domestic and international tourism, improved trading at V&A-owned hotels, and cost savings from its new desalination plant.
In December, the V&A attracted 3-million visitors, up 4.1% from December 2024, bringing total footfall for the year to 25-million. Vacancy across the precinct remains negligible at 0.3%.
During the period, Growthpoint invested R545m in development and capital projects, including the redevelopment of 36 Hans Strijdom in Cape Town (R110m) and Longbeach Mall in Noordhoek (R42m). La Lucia Mall in Durban was also upgraded.
“Our development and capital expenditure has focused on the stronger-performing Western Cape province due to its more attractive property market fundamentals,” the group said.
In its energy initiatives, the group has stepped up efforts, with total installed solar capacity reaching 61.7MWp by the first half of the 2026 financial year. During the period, it spent R42.9m on new solar installations, part of more than R1bn invested across 84 solar plants.
Wheeling of energy from the Etana Energy power purchase agreement started in October, generating 6.6GWh of renewable energy, while the Boston Hydro plant achieved grid code compliance that same month, marking key operational milestones for both projects, it said.
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