Cape Town’s V&A Waterfront, reportedly Africa’s most-valuable and -visited property, is proving to be a lucrative investment for Growthpoint Properties, South Africa’s largest primary-listed real estate investment trust.
In 2011, Growthpoint acquired a 50% stake in the V&A Waterfront, a mixed-use property development located around the historic Victoria and Alfred Basins which formed Cape Town’s original harbour.
In its financial results for the six-month period to 31 December 2016, which came out this week, the company reported distribution growth of 6.1%, supported by a strong 8.7% contribution from the V&A Waterfront.
Speaking to Moneyweb, Growthpoint managing director Estienne de Klerk described the V&A Waterfront as “probably… Africa’s most valuable property, and certainly the most visited”. According to the company, it attracted 24.6 million visitors in 2016, an increase of over a million compared to the previous year.
The V&A Waterfront also benefited from a high number of overall visitors to Cape Town – the city’s airport reportedly handled a record 10 million passengers in 2016.
Growthpoint is also investing in the further development of the V&A Waterfront. Over the reporting period it devoted R311.8m (US$23.8m) in development and capital expenditure, and made further commitments of R363.9m ($27.8m). Tenants for the newly developed areas include: British American Tobacco, PwC, Virgin Active, EY and Radisson Red. The Zeitz Museum of Contemporary Art Africa is anticipated to open at the new Silo District by September 2017.
The V&A Waterfront’s top five tenants, based on monthly rentals, are currently Nedbank Group (office), Allan Gray (office), Legacy Hotels (hospitality), Newmark Hotels (hospitality) and Edcon Holdings (retail).
This post first appeared HERE