Growthpoint and Attacq to invest billions in their precincts on stronger demand

Source: Growthpoint Properties.

The V&A Waterfront in Cape Town and Waterfall City in Midrand both recorded higher distributable income compared to the previous year, the V&A boosted by a high influx of tourists, while Waterfall City's growth was attributed to the strategic restructuring of its portfolio.

Growthpoint, with a 50% interest in the V&A Waterfront valued at R11.5bn, with its asset manager partner Public Investment Corporation (PIC) will be investing R4.5bn in the precinct.

Growthpoint's chief executive officer, Norbert Sasse said that there was a huge demand for hotels in Cape Town and he is looking at potentially building at least five in the city within the next two years, in addition to revamping the retail and residential properties.

"We're also looking at later living, bringing in a retirement kind of offering to bring more people into the Waterfront," he said.

Waterfall City developer Attacq will spend an estimated R1.7bn on properties currently under construction and on those that have just received approval for development, including residential property, in addition to the Ellipse Waterfall apartment building which is still under construction.

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"We're trying to create a work, live and play (environment) but you can't live and play if you don't have residential property," the company's development executive David Oosthuizen said, adding that demand has already surpassed the units provided by Ellipse Waterfall.

Waterfall City is anchored by Mall of Africa which has 0.7% vacancies left due to "a lot of demand from retailers to expand their footprint at the Mall," said Attacq's asset and property management executive, Michael Clampett.

Attacq already sold its African businesses this year and its Polish-based property group MAS in August and March respectively, using the proceeds to fully acquire Mall of Africa in May 2024 and invest in the development of Waterfall City.

"It makes sense for us to own 100% of the mall and capture all the benefits as we continue to roll out the developments," said Raj Nana, the chief financial officer of Attacq.