V&A Waterfront gears up for massive redevelopment

Source: Supplied.

This was the announcement of Norbert Sasse, Growthpoint Properties' group chief executive officer, who was speaking at the firm's financial-results media presentation in Sandton.

Sasse said up to R4.5bn will be invested in the iconic mixed-use precinct over the next two years and that the focus will be on five-star hotels, leisure-, residential-, and retail space.

He confirmed that both Growthpoint and the Public Investment Corporation (PIC) would fund the R4.5bn current development pipeline, and that approximately R2bn of this investment will be directed towards two internationally branded hotels at the V&A Waterfront. This includes a R1bn transformation of the iconic Table Bay Hotel into an InterContinental Hotels Group (IHG) property.

The hotel will offer 306 rooms, including 45 newly designed guest suites, all boasting spectacular views of the harbour, Table Mountain, and the Atlantic Ocean. It will also introduce a new elevated pool bar and terrace, a signature spa, and an Intercontinental Executive Loyalty Club Floor and Lounge. Additionally, all reception areas and restaurants will be revamped.

Legacy reimagined

"With its rich history, scenic location, and a legacy of excellence, this iconic property perfectly embodies the essence of the InterContinental brand, and we are excited to work with V&A Waterfront and Sun International on maintaining its legacy," Haitham Mattar, managing director, India, Middle East & Africa, IHG Hotels & Resorts, said.

Scheduled for opening in 2025, InterContinental Table Bay Cape Town aims to enhance the property's legacy while ushering in a new era of luxury hospitality in the region.

The hotel will be managed by Sun International under a hotel management agreement.

Positive investment shift

Sasse highlighted that Growthpoint and PIC's substantial funding in both current and new developments, despite recent operational challenges and the impact of higher interest rates, reflects a positive shift in investment sentiment and future property-sector growth.

"Growthpoint Properties Limited achieved robust operational results across its local and international investments for the 30 June 2024 financial year, with superb performance from the V&A Waterfront," he said.

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Sasse cautioned, however, that the strong operational performance has been overshadowed by the negative impact of higher interest rates, lower dividends from Globalworth Real Estate Investments (GWI) and reduced profit from the South African trading and development division, leaving distributable income down 10% in line with guidance provided to the market.

Meanwhile, in spite of these factors, he noted that post-election, there is a more bullish feeling overall.

"There is undoubtedly a greater sense of positivity, which has resulted in a rise in foreign investment in SA bonds and equities, and this will become more evident in the property sector as higher interest rates start working their way out of debt-servicing costs," he said.

Sasse noted that over and above its planned R4.5bn investment in the V&A Waterfront, both Growthpoint and the Public Investment Corporation (PIC) plan to invest approximately R700m in a new residential development at the mixed-use precinct.

Estienne de Klerk, managing director of Growthpoint Properties SA, stated that future expansion plans around Granger Bay, valued at approximately R20bn, are in the planning stages.

He maintained moreover that these plans depend on the V&A Waterfront obtaining additional development rights for about 440,000m² from the City of Cape Town.