In South Africa, real estate investment fund Growthpoint’s 50% share of the distributable income of the V&A Waterfront complex in Cape Town rose by 19% in the year ended June 2026. At the same time, the office portfolio in Gauteng province showed weaker performance, while the forecast for growth in distributable income per share for the 2027 financial year is 1–3%, Daily Maverick reports.
Growthpoint’s total distributable income for the reporting period increased by 4.4% to 5.2 billion rand. The company’s share of V&A Waterfront’s distributable income reached 964.7 million rand, while the complex generated about 18.5% of the group’s income. Foreign sources accounted for 22.1% of distributable income per share.
Tourism and V&A Waterfront
Net property operating income from comparable V&A Waterfront properties increased by 10.6%. According to the publication, this was supported by the tourism market in the Western Cape province. A one-off profit from residential sales at the 5 Dock Road project more than offset the impact of the Table Bay Hotel’s closure for refurbishment.
Growthpoint co-owns V&A Waterfront with the Government Employees’ Pension Fund. The complex’s share of income from hotel operations, tourism, leisure and related areas increased from 16% to 20%. At the same time, this increases the complex’s income dependence on changes in tourist flows.
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Office portfolio in Gauteng
About 70% of Growthpoint’s office assets in South Africa are concentrated in Gauteng. The office portfolio’s vacancy rate increased from 18.5% to 18.6% over the year. The proportion of successfully renewed lease agreements rose from 57.5% to 78.3%, but the rental reversion rate upon contract renewals worsened from minus 3.2% to minus 6.3%.
For offices in Gauteng, this figure was minus 10.2%, compared with minus 4.4% in the 2025 financial year. In the Western Cape province, it was positive at 0.4%, although it had been 3.9% a year earlier.
Growthpoint sold office assets in South Africa worth 3 billion rand, while sales of industrial properties amounted to 1.3 billion rand and retail properties to 568 million rand. The company is refocusing its office portfolio on modern P- and A-grade properties with high energy-efficiency indicators.
Growthpoint’s price-to-book ratio stands at 0.76. By comparison, Hyprop’s ratio is 0.89, while that of Western Cape-focused Spear REIT is 0.98.
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Lev Shevtsov
ua.news
