Redefine Properties Limited [JSE: RDF] has reported a solid set of results for the financial year ended 31 August 2025, marking another step in the group’s multi-year transformation journey. The diversified property group delivered a 7.8% increase in distributable income, lifted its operating profit margin by 1.1 percentage points to 76.2%, and reduced its loan-to-value (LTV) ratio to 40.6%, firmly within its target range.

Chief Executive Officer Andrew König says the results confirm that “Redefine ends the financial year in far better shape than we started it, with all key metrics trending positively.”

“We’ve seen property asset values lift by R1.9 billion in South Africa and hold steady in Poland. Our LTV ratio is also back within range. Importantly, we achieved an operating profit margin improvement against a backdrop of only moderate revenue growth, which is testament to the efficiency gains coming through the business,” König explains.

 Confidence returning as SA exits the FATF greylist

König says early signs of rising business and consumer confidence are evident in leasing activity and investor sentiment, supported by the country’s recent removal from the FATF greylist and prospects of a sovereign credit rating upgrade.

“The finalisation of South Africa’s greylisting exit is significant – it will translate into lower costs of capital, attract more foreign investment flows, and further deepen domestic liquidity. We’re already seeing the bond market pricing that in,” he notes.

“Add to that the Reserve Bank’s firm inflation targeting stance and the possibility of a rating uplift next year, and you have the makings of a tangible, rising optimism. Those tailwinds, coupled with Redefine’s strengthened balance sheet, position us well to capture growth as sentiment improves.”

CFO Ntobeko Nyawo agrees that the broader macro turn is set to benefit well-capitalised corporates.

“Our balance sheet is already in a strong position; with an interest-cover ratio of 2.2 times, 83% of debt hedged, and a weighted average cost of debt reduced to 7%. That gives us flexibility to fund growth while maintaining liquidity prudence.”

 Portfolio quality and diversification underpin performance

COO Leon Kok says Redefine’s diversified portfolio again proved its resilience, with retail and industrial strength offsetting a still-muted office sector.

“Our portfolio mix really paid off this year. Retail and industrial delivered very pleasing results, offsetting the structural headwinds still facing offices,” Kok explains.

“Operating fundamentals are stabilising, with occupancies up, renewal reversions improving, and asset values across all three sectors showing year-on-year gains. Even office valuations have turned positive on a total-basis view.”

Retail renewal reversions moved into positive territory (1%), and trading densities improved, with tenants’ rental-to-turnover ratios at 7.4%, reflecting sustainable affordability. Industrial vacancies remain negligible at 2.7%, supported by buoyant logistics and warehousing demand.

“Industrial continues to perform exceptionally well,” Kok says. “We’re seeing strong demand, particularly for logistics and warehousing space close to major transport corridors, where constrained supply is pushing rentals higher. Strategically, it’s a sector we’re keen to expand on, especially where we have developable land.”

On the retail front, Kok notes that tenant health remains solid and that the grocer anchors have supported the turnover growth. “We’ve seen marked improvement in their trading performance, which bodes well for the overall retail environment.”

In the office sector, occupancy is stable at 87%, and leasing volumes (at 262,000 m² signed) underscore renewed deal activity.

“Business confidence drives office demand, and the deal activity we’re seeing suggests sentiment is stabilising. Certain nodes, particularly in the Western Cape, have performed exceptionally well as provincial stability and governance continuity have translated into the lowest vacancy levels in the country,” he adds.

“Looking ahead, a swift, peaceful and conclusive local election outcome would be a meaningful catalyst for offices, particularly in Gauteng, by restoring certainty around municipal service delivery and enabling businesses to commit to space.”

 Poland adds growth momentum

Redefine’s Polish platform (EPP), whose retail platform accounts for roughly 28% of group assets, continued to deliver a strong, stable performance. EPP’s core retail portfolio maintained a 99.4% occupancy rate, while European Logistics Investment’s (ELI) logistics operations doubled distributable income contributions to R214 million thanks to rising occupancies (up to 96.8%) and higher market rentals.

“Poland enjoys GDP growth roughly three times that of South Africa and very low unemployment. That’s created a robust consumer market that continues to support our retail and logistics assets,” says König.

“The cost reduction plan implemented at EPP has strengthened operating margins, while self-storage developments under way will double our footprint in that segment. The stability and growth from Poland demonstrate why geographic diversification remains an essential buffer in our group asset portfolio.”

 Balance-sheet strength and disciplined capital management

Nyawo highlights that Redefine’s deleveraging and liquidity initiatives are yielding results.

“We’ve improved our LTV ratio from 42.3% to 40.6%, reduced debt margins in South Africa by 20 basis points, and maintained a well-laddered maturity profile with no near-term refinancing pressure. Liquidity of R6.7 billion gives us room to manoeuvre,” he says.

The group disposed of R1.1 billion of non-core assets during the period while reinvesting a similar amount in upgrades and energy-efficiency projects. Installed solar capacity rose 35% to 58.4 MWp, with a further 8.4 MWp in progress – a 50% increase since 2024.

“Capital recycling remains core to our strategy,” adds Kok. “We’re continuously repositioning and improving the portfolio rather than chasing new developments. Our active asset management focus keeps our assets relevant and enhances income resilience.”

 Sustainability and long-term value creation

“Nine of our buildings are now net-zero, and both our South African and Polish portfolios achieved strong GRESB scores of 81, reflecting our consistent ESG performance. For us, sustainability and operational resilience go hand-in-hand – they underpin portfolio quality and investor confidence,” König says.

 Outlook: disciplined optimism

König notes that while Redefine’s share price has delivered a 310% total shareholder return over five years, this recovery reflects more than market momentum – it underscores the success of a focused strategic reset.

“When COVID hit, our share price fell sharply, so part of that growth is off a low base. But what really matters is how fundamentally the business has transformed since then,” he says. “Five years ago, our strategy was scattered across multiple geographies and asset classes. Today, we’re focused, disciplined, and in control of every asset we manage. That focus has changed how Redefine looks and feels, and it shows in our performance.”

Looking ahead, Redefine expects distributable-income-per-share growth of 4 to 6% in FY2026.

“We remain committed to disciplined capital allocation for sustainable growth – improving portfolio quality, simplifying our international joint ventures, and maintaining a strong balance sheet,” says König.

“Moderating inflation and improving liquidity all point to a more constructive operating environment. If we maintain this trajectory, we’ll continue delivering inflation-beating capital and income growth for shareholders.”

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Redefine Properties, one of South Africa’s largest property groups, has signed a renewable energy supply agreement that will meet a significant portion of its total Eskom-connected electricity requirements from renewable energy sources. This agreement, signed with NOA supports Redefine’s decarbonisation efforts through wheeling, while also enabling significant energy cost savings for the JSE listed property company.

With a municipal wheeling solution between the parties to follow as a second phase of the engagement, the initial agreement focuses on Redefine’s Eskom-connected premises across multiple property locations.

“Future-proofing our assets is central to Redefine’s strategy, and this agreement plays a key role in that. By securing renewable energy at scale through wheeling, we’re not only reducing emissions and controlling costs but also building resilience across our portfolio,” said Scott Thorburn, National Asset Manager Commercial at Redefine Properties.

Redefine will receive a carefully crafted blend of renewable energy at 11 of its Eskom-connected properties, ensuring a high level of renewable energy penetration while providing the flexibility to reallocate energy between locations. The agreement will supply 37 GWh per year over a 20-year period, reducing CO₂ emissions by over 39 000 tonnes annually.

NOA, as an integrated renewable energy utility, will source the energy from both third-party Independent Power Producers (IPPs) and its own generation facilities. The aggregated energy will then be allocated to the property group’s designated premises. Most notably, one of the sites that will be supplying Redefine is the Khauta Solar PV project, located near Welkom, Free State. The generation facility is expected to be one of the largest Solar PV sites in South Africa.

“NOA’s bespoke energy products are ideal for property sector customers. By allowing energy reallocation between multiple locations across South Africa, we ensure high renewable energy penetration while limiting the risk of customers paying for unused energy,” said Karel Cornelissen, CEO, NOA.

SOLINK Energy Brokers, a wheeled energy specialist, analysed Redefine’s energy needs and sustainability goals, sourced NOA as the ideal supplier, and supported the deal through to signature.

This agreement underscores the critical role of energy traders and aggregators in supporting the decarbonisation of the property sector, where rooftop and onsite energy solutions often have limitations.  By providing tailored renewable energy solutions, NOA enables large-scale property groups to structure both commercially accretive and environmentally compelling energy agreements.

“The property sector is a key growth area for NOA, offering solutions that can achieve over 80% renewable energy penetration through a phased supply framework,” concluded Cornelissen.

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By Samantha Lambert, General Manager, Redefine Properties

In an era of unprecedented environmental and operational challenges, South Africa’s office parks stand at a critical juncture. Energy insecurity, water scarcity, and ageing municipal infrastructure are no longer distant concerns but immediate challenges that demand innovative solutions. Yet, within these challenges lies an opportunity to reimagine office parks as beacons of sustainability and operational resilience.

The business imperative for sustainable office parks

Sustainable office parks are no longer just an environmental consideration; they are a business imperative. Unreliable municipal power supply and recurring water shortages directly impact operational continuity and tenant satisfaction. Simultaneously, tenants and investors increasingly demand spaces that combine operational resilience with environmental responsibility. This convergence of operational necessity and stakeholder expectations is reshaping how we approach office park development and management.

Black River Office Park in Cape Town’s Observatory district exemplifies this transformation. The park’s evolution has been accelerated by significant node activation, including Amazon’s new head office development across the way. This strategic location, with its superior road infrastructure connecting to both northern and southern suburbs, has catalysed the area’s development into what we envision as an emerging Century City-calibre node.

Infrastructure that powers performance

Leading sustainable office parks are distinguished by infrastructure investments that address both environmental impact and operational resilience:

• Renewable energy systems: Black River’s solar fleet, with an installed capacity of 1,496 kWp supported by 5,715 panels, significantly reduces grid dependence while ensuring consistent power supply.
• Backup power solutions: A comprehensive backup generator system, coupled with a centralised power plant, ensures business continuity during grid interruptions – a critical feature that’s no longer optional but essential for tenant operations.
• Water security measures: Strategic use of borehole water for refuse yards and irrigation supports water-wise landscaping, reducing municipal water dependence while maintaining attractive green spaces.

These investments deliver measurable returns through reduced operating costs and enhanced tenant satisfaction. The park’s near-full occupancy demonstrates the strong market demand for sustainable, resilient office space.

The multi-tenant advantage: How diversity drives growth

Sustainability extends beyond utility management to encompass how spaces support diverse business needs. Black River Office Park comprises 14 distinct buildings, each with its own identity, enabling a unique ecosystem where corporate offices and business process outsourcing (BPO) operations successfully coexist. As we’ve discovered, sustainable office parks must be flexible enough to accommodate varying density requirements while maintaining premium-grade standards.

The park’s design thoughtfully incorporates energy-efficient building systems alongside carefully planned green spaces that enhance both environmental performance and user well-being. Supporting amenities promote tenant productivity and satisfaction, while flexible spaces readily adapt to changing business needs.

This approach has attracted a diverse tenant mix, including boutique gyms, award-winning salons, medical practices, and varied food offerings. As a result, it has created a vibrant, community-centric environment that supports approximately 2,000 employees, a number set to double with recent expansions.

Collaboration: The key to sustainable success is collaboration

Achieving meaningful sustainability requires close collaboration among REITs, tenants and vendors. At Black River, this collaborative approach begins with our tenants, working closely with them to optimise space utilisation and resource efficiency. We engage suppliers in sustainable procurement practices while maintaining strong partnerships with the City of Cape Town and CapeBPO to align with regional development goals. Our Red Thread initiative exemplifies this collaborative spirit, repurposing materials from gutted buildings to benefit the community and demonstrate our commitment to circular economy principles.

Smart design, smarter returns

Modern technology plays a crucial role in maximising sustainable infrastructure performance. At Black River, we’re investing in smart building systems for resource optimisation, complemented by advanced monitoring tools for energy and water consumption. Our commitment to continuous assessment of environmental performance drives strategic upgrades that maintain our premium-grade status.

The planned redevelopment of Gate House, which anchors the entry point to Black River Park, illustrates our commitment to ongoing evolution. This project will enhance the building’s exterior while maintaining its distinct character, demonstrating how sustainable design can complement heritage features.

Market leadership through environmental excellence

As South Africa continues to face environmental and infrastructure challenges, sustainable office parks will play an increasingly vital role in our business landscape. The success of Black River Office Park demonstrates that sustainability isn’t just about environmental responsibility; it’s about creating resilient, future-ready spaces that deliver lasting value for all stakeholders.

Property owners and managers must take a long-term view, balancing immediate operational needs with future sustainability requirements. This means investing in robust infrastructure, fostering collaborative ecosystems, and maintaining unwavering commitment to continuous improvement.

The future belongs to office parks that can adapt, evolve and thrive in the face of change. Embracing sustainable practices today not only protects our environment but also ensures the long-term viability of our assets. At the same time, it creates spaces where businesses can flourish for generations to come.

The post Office parks reimagined appeared first on SA REIT.

Highlights

• Portfolio value: 26 billion, reflecting a 13.58% increase year-on-year
• Market capitalisation increase of 5 billion to R 3.3 billion
• Loan-to-value (LTV) ratio: 97%
• Interest coverage ratio (ICR): 34 times
• Fixed debt ratio: 18%, with an average debt expiry of 24 months
• Proposed final payout ratio: 95%
• Portfolio occupancy rate: 02%

At the pre-close presentation, Spear’s CEO, Quintin Rossi, noted: “FY2025 has been a transformative year for us, driven by the success of the new Western Cape portfolio acquisition. Thanks to our regional operating strategy, the portfolio has been successfully stabilised into the core portfolio ahead of schedule and under budget. Our commitment to the Western Cape real estate market has resulted in sustained portfolio growth, high occupancy levels, and strong cash collections.”

Portfolio and operational performance

• Occupancy:02%, supported by a strong tenant retention strategy
• Portfolio in-force escalations:34%
• Renewals and new lets: 86,359m² concluded versus 84,620m² expiring
• Cash collections:78% year-to-date
• Rental reversions: Portfolio-wide positive reversion of 52%

CFO Christiaan Barnard added: “Active capital recycling and disciplined financial management have bolstered our balance sheet, ensuring a resilient and sustainable capital structure. Our lower cost of debt and risk mitigation strategies continue to support our financial stability which has been a positive contributor to overall performance during the year.”

Spear has successfully implemented a R1.15 billion portfolio acquisition, significantly enhancing its asset base and bolstering its market presence with this accretive 93 500m² diversified portfolio acquisition. “With an entrepreneurial management team that remains laser-focused on active asset and portfolio management, the Spear investment team is looking ahead towards the new financial year with approximately R1 billion in new acquisition opportunities currently under review, positioning the company for continued and sustained growth”, announced Rossi

Spear’s organic development pipeline is set to add future value to the core portfolio, with strategic projects aimed at expanding its industrial and mixed-use asset base. The GTX Park in George, a 30,000m² industrial development, is progressing with a total capital investment over 5 years of R400 million. Bravo Park in Blackheath is set to expand to Phase 2 by 7,000m², with an R82 million capital investment. Meanwhile, the Marine Drive mixed-use development in Paarden Eiland, anticipated to commence the rollout in phases, will require a total capital investment of R1.5 billion over five years.

Sustainability remains a core focus, with over 60% of the portfolio now equipped with solar PV infrastructure. Ten new solar PV systems are scheduled for installation, following the acquisition of the new portfolio. Furthermore, Spear is exploring wheeling projects within the City of Cape Town to enhance energy security and resilience across its portfolio.

Outlook for FY2025

Looking ahead, Spear remains focused on growth, value creation, and sustainable operations. Management reaffirmed its full year guidance of distribution per share (DIPS) growth of between 2% and4% for FY2025 while maintaining a 95% payout ratio.

Rossi concluded: “With strong leasing momentum, solid regional real estate fundamentals, an enhanced portfolio, and our disciplined financial approach, we are confident in our ability to navigate evolving market dynamics and deliver sustained value to our stakeholders in line with our mission statement.”

Spear will release its results for the full year FY2025 on 22^nd May 2025.

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The company reported that its South African portfolio achieved a net operating profit margin of 77.8%, while EPP, its directly owned Polish retail property platform, improved its margin from 66.4% to 71.7%. This led to a consolidated group net operating profit margin of 75.9%.

Redefine CEO Andrew König highlighted that the global path to economic normalisation has been disrupted by changes in US policy under President Donald Trump, which introduced uncertainty around interest rates and inflation. “The stage is now set for a shallow easing cycle, and rates may not reach the levels we previously expected. While European interest rates continue to trend downward, escalating geoeconomic tensions cloud the 2025 outlook. To sustain growth in valuations, we cannot rely solely on interest rate movements. Our strategic focus remains on organic income growth, as this will drive value creation in the current market.”

Looking ahead, Redefine’s strategy is focused on disciplined capital allocation, the sale of non-core assets to reduce its loan-to-value ratio, restructuring joint ventures to enhance visibility of income streams, whilst delivering income growth. König noted that commercial real estate transactional activity is on the rise, which will support the company’s plans to offload non-core assets, with growing interest in the market.

Despite the disruption caused by the delayed national budget speech, König pointed to two promising initiatives from the National Treasury: efforts to remove South Africa from the greylist by October and the restoration of the country’s investment-grade credit rating. “This is critical for our business, as Redefine’s Moody’s rating was downgraded alongside South Africa’s. A reversal of this could improve access to international debt markets, and the delayed budget may even help with these efforts.”

 Green shoots in the SA portfolio

 Redefine’s South African portfolio has demonstrated solid performance, particularly in the industrial and retail sectors, which drove a 1% increase in overall occupancy since August 2024. Additionally, 80% of renewals were completed at stable or increased rental terms, a positive indicator of growth.

The industrial sector has proven especially resilient, with occupancy rising to 97.6%, alongside positive rental reversions in a competitive market. “The industrial sector continues to be one of our strongest performers, and we see potential for further growth if capital availability allows us to expand,” said Leon Kok, Redefine’s COO.

Conversely, the office sector remains challenged by excess supply and limited demand, except in select nodes. A significant lease renewal resulted in a -17% renewal reversion during the period. However, Redefine mitigated this impact through strong leasing activity in other locations, such as the Western Cape and Sandton, which benefit from proximity to the Gautrain. “Demand is focused on high-quality assets, and our active asset management ensures our portfolio remains well-positioned to attract this limited demand,” Kok added.

Sustainability commitments

 Redefine is making notable strides towards its sustainability goals, with an ambition to become the most sustainable property company by 2030. The company plans to expand its renewable energy capacity by 47%, with an anticipated 17% of energy consumption coming from renewable sources by year-end. Additionally, Redefine has achieved a 38% reduction in greenhouse gas emissions across its European portfolio, further solidifying its commitment to environmental sustainability.

The company also received recognition from Sustainalytics, earning three badges, including being ranked the 16th most sustainable global real estate company, the only South African REIT to place among the top 50 worldwide.

Growth in Poland

 While South Africa faces ongoing challenges, Poland’s economic growth has benefited from European interest rate cuts and social grants that have boosted household spending and retail conditions. EPP’s core properties have seen impressive occupancy levels of 99.3%, with rental reversions rising from 0.2% to 1.5%. The rent-to-sales ratio remains well below 9%, indicating healthy tenant affordability.

Redefine is pursuing a strategy of selling non-core assets and restructuring joint ventures in Poland to reduce complexity and lower the see-through LTV. “We are exploring options to simplify our joint ventures to either exit or fully own them,” König explained.

 Strong cash generation

 Redefine’s financial position remains strong, with a liquidity profile of R6.4 billion as of November 2024. The company has also proactively managed its debt profile, including the FY25 maturities that are progressing well on the back of improved liquidity levels in the capital markets. As of February 2025, Redefine’s weighted average cost of debt decreased to 7.2%, providing some relief amid global inflationary pressures.

Ntobeko Nyawo, Redefine’s CFO, emphasised, “Our focus continues to be on generating organic growth from our existing portfolio, maintaining a strong balance sheet, and weathering the current economic cycle. We are positioning the company to capture opportunities in high-quality assets, while ensuring strong cash generation to support our dividend payouts.”

Looking ahead: Living the upside

Redefine enters 2025 with a focus on “living the upside,” aiming for sustainable, long-term value creation. König concluded, “While some macroeconomic factors, including US policy shifts, remain unpredictable, we are confident in our ability to create our own upside and deliver on our strategic goals.”

Despite macroeconomic challenges, the company is maintaining its earnings guidance for FY25, with distributable income per share expected to be between 50 and 53 cents.

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In 2024, Redefine received an overall Sustainalytics ESG risk rating of 6.5, positioning it 35th out of 15,111 companies rated by Sustainalytics worldwide and 12th globally in the real estate category. A rating of 6.5 places Redefine in the lowest negligible-risk bracket, meaning that the company’s exposure to ESG issues is low, while its ability to manage any issues with the help of its practices and policies is high.

Redefine is dedicated to setting the benchmark for ESG leadership in the South African real estate sector. Its strategy embeds ESG principles into every decision, ensuring long-term value creation through sustainable investment and operations. The company’s environmental strategy is defined by clear policies, measurable impact, and accountability across key focus areas.

As part of its ESG efforts, Redefine integrates numerous sustainable design practices into its office parks and properties. Energy-efficient buildings, green spaces, and eco-friendly materials are standard, reinforcing its dedication to operational efficiency and environmental responsibility. These efforts translate into tangible benefits, from lower utility costs and healthier workspaces to increased tenant satisfaction.

As demand for responsible and sustainable real estate grows, Redefine continues to lead by example. For instance, Blue Route Mall is advancing its sustainability efforts by working toward becoming a plastic-free mall, while Matlosana Mall has implemented waste reduction and energy conservation initiatives to minimise its impact.

Sustainalytics’ ESG Risk Ratings provide a multi-dimensional assessment of a company’s exposure to industry-specific risks and its ability to manage them. The rating system is built on three key pillars: Corporate Governance, Material ESG Issues (MEIs), and Idiosyncratic Issues. By assessing companies through this framework, Sustainalytics analyses policies, practices, and performance data to determine ESG risk levels.

As ESG factors increasingly shape investment decisions, Redefine’s achievements reinforce its status as a responsible, forward-thinking REIT. Looking ahead, the company remains focused on advancing its ESG strategy, continuously improving sustainability measures, and driving meaningful change in the real estate sector.

As stated by Ursula Mpakanyane, Head of ESG at Redefine Properties: “At Redefine, sustainability is not just a commitment; it is embedded in everything we do. Being the only South African REIT featured in Sustainalytics’ Global 50 Top-Rated ESG Companies is a testament to our unwavering dedication to responsible real estate. Our negligible-risk ESG rating of 6.5 reflects the strength of our policies, governance, and environmental initiatives, reinforcing our ability to manage ESG risks effectively. As we continue to integrate sustainability into our operations, from energy-efficient buildings to waste reduction and green design, we remain focused on creating long-term value for our stakeholders while shaping a more resilient and sustainable built environment.”

With a commitment to ESG leadership, Redefine is not just future-proofing its business; it is shaping the future of responsible real estate. Through innovation, accountability, and a results-driven approach, Redefine continues to set new standards, delivering lasting value for stakeholders and the environment. This is not just progress; it’s a sustainable legacy in the making.

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Hyprop, a total returns-focused fund that specialises in retail property announced its operational update for the four months ended 31 October 2024. The Group’s dominant retail centres in South Africa and Eastern Europe continued to grow tenants’ turnover and trading density. This reflects management’s ongoing repositioning initiatives and leasing strategies, combined with better consumer sentiment.

“The pleasing performance reflects our investments over the last few years, not only in centre and tenant upgrades and improvements but also in energy and water projects at all our centres,” said Hyprop CEO Morné Wilken. “We have given particular attention to areas most affected by infrastructure decay, to ensure our tenants and shoppers can continue to trade without disruption.”

The company’s pre-close operational update showed a pro-forma improvement in the loan-to-value ratio (LTV) to 35.2% at end-October from 36.4% at end-June, and an increase in interest cover to 2.62 times from 2.5 times. This follows the completion of the disposal of the sub-Saharan Africa (SSA) portfolio to Lango Real Estate Limited. At the end of the period, Hyprop held R575 million cash on hand and R1.2 billion of available bank facilities, after paying the 2024 dividend.

Given factors such as the improvement in the overall risk environment, that Hyprop has caught up on historic capital underspending in SA, the sub-Saharan portfolio has now been sold and Hyprop’s balance sheet strength, the Board intends to review the dividend policy and payout ratio. Any changes will be communicated when the results for the six months ending 31 December 2024 are released in March 2025.

Operational performance

South Africa

In the four months to end-October, Hyprop welcomed several new stores to its centres in South Africa, some of which were “firsts” for the country. It also refurbished and “right-sized” (expanding some spaces and reducing others) stores, where necessary.

Tenants’ turnover in this period was 5.2% higher than in the same period in 2023 and trading density was 3.9% better. Foot count was flat (-0.2%). The improving trend in rent reversions continued, with a positive weighted average reversion rate of 6.7%. Retail vacancies, at 2%, were well controlled.

Some of the highlights were:

In the Western Cape, Canal Walk has been enhanced by some exciting new concepts. These include Old School, a retailer specialising in the sale of South African sports supporters’ jerseys and other merchandise; and the first South African store for Baseus, one of the world’s fastest-growing consumer electronics brands. Silki, which sells luxurious skin, hair and body care products, opened its first stand-alone store.

Hyprop is adding 5 500m² of GLA at Somerset Mall as a part of its redevelopment and expansion project. The project planning is progressing well with most council and other regulatory approvals obtained. Construction work will commence later this financial year and is expected to be complete at the end of July 2026. The project will add 50 new stores to the vibrant centre, focusing on affordable luxury and athleisure as well as family entertainment and food.

In Gauteng, new store openings in Rosebank Mall included the first Cable & Co (fashion and footwear) in Gauteng and Ajmaan, which sells modest clothing. Continental Linen, Waxit and Ribz N Wings all opened during the period. In July 2024, the Soko District became fully let.

The Glen welcomed Porter & Craft, a luxury leather goods retailer and Cannafrica during the period. While The Glen Continental Linen and Chateau Gateaux during the period.

There were exciting developments at Hyde Park Corner. The Forum (a new events venue) and Workshop 17 (flexible office space) both opened in October. The centre also welcomed new outlets for strong global brands such as Birkenstock and Ted Baker; Avenue 2A, which houses international luxury brands; Colourbox, an international and local luxury lifestyle brands retailer; Kids Around, a luxury and premium children’s fashion brand; and Health Works, a health store that offers both products and a blend of traditional healing and cutting edge services.

Eastern Europe (EE)

The EE portfolio continued to achieve strong operational results in these four months, notably in tenant turnover and trading density. Asset management initiatives and investments in upgrades have distinguished Hyprop’s centres from its competitors, allowing it to benefit from the overall growth in retail within the region.

As at 31 October 2024, the EE portfolio’s retail vacancy rate was an impressive 0.2%. Tenants’ turnover was up 11.5% for the four-month period compared with the same period in 2023 and trading density lifted by 9.4%. Foot count was 1.6% higher.

Some of the highlights were:

In Croatia, both City Center one East and City Center one West reported growth in all key metrics, including foot count, despite the non-working Sundays Trade Act, which allows retailers to operate only 16 Sundays per calendar year. Centres are not allowed to trade on public holidays.

In Bulgaria, The Mall’s new tenants included Jeff de Bruges, a new premium chocolatier concept; Intesa, a locksmith; Stilna jena, a Bulgarian ladies fashion brand; Sunday Habit, a Bulgarian influencers’ merchandise shop; and Elenski Balkandjii, a farmer’s deli shop.

In North Macedonia, Skopje City Mall continues to refine its tenant mix and will soon welcome Gerry Weber, M House Roastery Café and mobile operator M-tel. Cineplexx has undergone a comprehensive upgrade, and Skopje City Mall is now the only centre in North Macedonia with a state-of-the-art cinema as part of its entertainment offering.

Environmental initiatives

Hyprop has made progress on ensuring energy and water security for its centres in South Africa, with a gas and battery storage project underway at Rosebank Mall. Management is taking steps to source solar power through Power Purchase Agreements at The Glen and Cape Gate and is looking at wheeling green energy from a third party to Canal Walk and Somerset Mall. Projects have started to install potable water storage at Clearwater Mall, Woodlands and Hyde Park Corner and similar projects will begin at the Glen and Rosebank Mall in 2025.

Canal Walk, Somerset Mall, Woodlands, and The Glen have all achieved net zero waste status. The integration of Table Bay Mall with the Group’s waste management strategy is progressing.

Outlook

Wilken said management’s priorities in the current year and beyond would include driving the implementation of sustainable solutions to reduce the impact of the infrastructure challenges we face in South Africa, expedite organic growth opportunities, for example, the Somerset Mall expansion in the South African portfolio, reviewing the portfolios annually to evaluate the case for recycling of assets and to consider new growth opportunities, disposing of the shareholding in Lango and redeploying the capital into new growth opportunities, and maintaining the health of the balance sheet.

“With these priorities in place, we are well-positioned to pursue growth opportunities without being hindered by past structural, financial, and asset-related issues,” he said.

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 Johannesburg, November 2024 – Redefine Properties, South Africa’s listed real estate investment trust (REIT), has officially opened the newly expanded Pan Africa Mall. The expansion added 9,000sqm of additional retail space, increasing the mall’s total gross lettable area (GLA) to over 25,000sqm. The mall is co-owned by Redefine Properties and Talis Property Fund.

Pan Africa Mall, located in Alexandra, underwent a significant upgrade, offering a wider range of stores and restaurants for the community. The centre now features a new upper-level floor for fashion retailers, including the relocated Mr Price and Ackermans stores, and an extended ground floor, which includes a new Roots Butchery, an expanded Truworths, and an FNB branch. Notable new tenants include W.Edit, Sportscene, Pick n Pay Clothing, Jam Clothing, Hungry Lion, Vision Works, The HUB, Selfast, Nizams, Clothing Junction, and Tekkie Town.

Andrew König, Chief Executive Officer at Redefine, says, “The expansion of Pan Africa Mall is a major milestone for both Redefine and the Alexandra community. By creating opportunities for local businesses and investing in sustainable solutions like solar power, we are contributing to the area’s economic growth while ensuring the centre serves the community for years to come.” The new expansion reflects Redefine’s vision to enhance the retail experience and collaborate with the Alexandra community towards collective growth.

Pan Africa Mall’s environmental, social, and governance (ESG) credentials will be improved as the upgrade incorporates full back-up power and water – including the exploration of sinking a borehole, a R12.2 million solar photovoltaic (PV) system with an 851kWp capacity, and the installation of energy-efficient lighting and water efficient toilets. Including these ESG measures into the centre’s operations is vital to Redefine’s commitment to sustainability, enhancing customer loyalty, and future-proofing the shopping area, helping the community it serves.

Tebogo Mogashoa, Chairman of Talis Property Fund, adds, “As investors deeply committed to Alexandra, Talis Property Fund sees this expansion as more than just retail growth – it’s an investment in the social fabric and economic future of the area.

“We have seen how the Pan Africa Mall has evolved into a welcoming space that fosters strong community connections, where families, small businesses, and social partners come together. Building on a foundation of trust, our partnerships remain instrumental in creating lasting value, reflecting the strength of collaboration in stimulating local economic development.

“We’re grateful to our social partners who have played a central role in helping us realise this vision.”

In a pioneering initiative, the centre was the first of its kind in South Africa built with fully integrated public transport, which includes a 50,000sqm taxi facility. Street hawkers are now being offered permanent stalls – managed by the Alexandra Taxi Association. Redefine is committed to growing smaller businesses and improving the area for customers.

“This project is about more than just expanding a shopping centre. It is about empowering local businesses and driving urban renewal in Alexandra. Redefine is committed to creating lasting value for the community and shaping a sustainable future for South African cities,” König concludes.

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Growthpoint Properties (JSE: GRT) has developed a bespoke automation solution in partnership with 1ai, a leading provider of intelligent automation solutions, to streamline the processing of municipal invoices while unlocking valuable sustainability data. The initiative forms part of Growthpoint’s broader efforts in using pioneering technology to enhance operational efficiencies and reduce environmental impact to achieve its ambitious sustainability goals.

With its extensive South African portfolio spanning around 350 buildings, Growthpoint processes more than 1,100 municipal invoices each month, a task requiring around 160 hours of manual handling, and diverting resources from other vital activities. This makes it difficult to extract and apply critical data related to utility consumption, such as power and water use information.

Recognising the potential for automation to transform this process, Growthpoint collaborated with 1ai to develop a bespoke system that automates the invoice processing workflow while extracting and structuring the useful sustainability data embedded within the documents. The result is a process that combines advanced Robotic Process Automation (RPA) with powerful text extraction algorithms, designed to manage the varied formats and complexities of municipal invoices.

The project has already delivered substantial operational benefits. In addition to saving 475 hours per month across both invoice processing, as well as the extraction and analysis of sustainability data, Growthpoint can now redirect resources towards other efforts, such as enhancing sustainability reporting and supporting the company’s broader environmental, social, and governance (ESG) goals.

Engelbert Binedell, Chief Operating Officer at Growthpoint Properties, says, “Automation has significantly improved our invoice processing and data analysis capabilities. By accurately capturing detailed utility data, we are now better equipped to meet our sustainability targets and optimise resource management across our properties. This improves our efficiency and enhances our strategic decision-making process.”

Rudolph Janse van Rensburg, Founder and CEO of 1ai, adds, “Our partnership with Growthpoint demonstrates the practical value of intelligent automation in managing complex processes. By streamlining the processing of municipal invoices, and thereby unlocking critical sustainability data, we have helped Growthpoint enhance operational efficiency while gaining valuable insights that support their sustainability goals. Our collaboration reflects a shared commitment to leveraging technology to drive efficiency, sustainability, and innovation in the property sector.”

The success of the initiative is a key component of Growthpoint’s strategy of incorporating intelligent automation across various aspects of its operations, with plans to expand the application of RPA to other critical areas, including vendor onboarding and contract lifecycle management.

Binedell says the automation initiative aligns with Growthpoint’s vision of remaining at the forefront of sustainable property management and setting new standards for operational excellence and environmental stewardship within the industry.

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