Linkedin-in
Twitter Linkedin-in

QUICK
LINKS

Denise

Growsmart Celebrates Top Learners at 2024 Finals

by

Growsmart Educational Programme Celebrates Western Cape’s Top Learners at 2024 Finals

Cape Town, 09 October 2024 — The Growsmart Educational Programme, an initiative by Growthpoint Properties, celebrated the brightest young minds in the Western Cape at the pinnacle of its annual competition season. The final event took place at The Lookout, V&A Waterfront, where top-performing learners in literacy, mathematics, and story writing were honoured.

Launched in 2010, Growsmart is a nationally and internationally recognised initiative fully endorsed by various Education Departments and serves as the flagship programme of the Western Cape Department of Education. This impactful programme aims to enhance educational outcomes in underperforming schools by engaging learners in grades 4, 5, and 6 through a dynamic, curriculum-based competition. Focusing on literacy, mathematics, and story writing, Growsmart helps intermediate learners improve critical academic skills while fostering creativity and problem-solving abilities.

2024 Western Cape Competition

The 2024 competition kicked off in April, with schools from districts including Cape Metro and West Coast District participating. Following multiple rounds and semi-finals, the best 15 learners in literacy and mathematics and 10 learners in story writing advanced to the final competition.

In the Literacy Competition, the 15 finalists were selected from 327 participants and tested on their ability to spell, define, and use words in sentences, alongside their understanding of verbs, nouns, idioms, and adjectives. The winners are:

  • 1st Place: Delft South Primary School
  • 2nd Place: Teske Primary School
  • 3rd Place: Dagbreek Primary School

This marks Delft South Primary School’s second consecutive win, earning the school an iPad Lab valued at R350,000, further enhancing its learning resources.

In the Mathematics Competition, 15 finalists out of the 321 participants tackled questions ranging from BODMAS to problem-solving and mental maths. The winners are:

1st Place         Idasvallei Primary School

2nd Place        Diazville Primary School

3rd Place        Eikendal Primary School

The Story Writing Competition is a project-based, mentor-led event in which learners

submit their own original written stories. Nearly 166 storybooks were submitted. The

winners are:

1st Place                     Tuscany Primary School, Olwam Sondlo

2nd Place                    Helderkruin Primary School, Sobo Ndongo

3rd Place                    Kenmere Primary School, Jordan Theart

Most Creative             Kenmere Primary School, Kylah Simons

The winning schools were awarded prizes to further support their educational efforts and enhance their students’ learning experiences.

Inspiring Future Leaders

Jewel Harris, Founder of Growsmart and General Manager of Growthpoint Properties Cape Town, applauded the dedication and talent of this year’s participants. “Congratulations to everyone who took part in this year’s interactive programme. It has been more focused, relevant, engaging, and innovative than ever before. Well done to the winning learners, mentors, and schools.”

Shawn Theunissen, Head of Corporate Social Responsibility at Growthpoint Properties, echoed these sentiments, adding, “The winning learners and mentors represent the leaders of tomorrow and today. We’re incredibly proud of them all. Investing in positive social impact across the entire education value chain not only transforms lives today but also shapes future generations.”

A Platform for Continued Success

Beyond the competition, Growsmart provides learners with additional opportunities through the Growsmart Bursary Programme, supporting their ongoing educational journey.

As Growsmart concludes its fifteenth year in the Western Cape, the programme continues to expand its reach and impact, celebrating growing successes in the Eastern Cape and Limpopo. Growsmart remains dedicated to creating educational opportunities that empower communities and foster future global citizens within a more inclusive society.

Guests were greeted with a complimentary coffee generously sponsored by Vida e Caffè and served with a smile by their friendly baristas.

Congratulations to all the Western Cape winners!

Growthpoint advances sustainability goals with automation and 1ai

by

Growthpoint Properties advances sustainability goals with automation and 1ai 

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.

Vukile continues its Iberian charge with Lar España disposal

by

Vukile continues its Iberian charge while banking a significant profit of over R1.5 billion for shareholders with Lar España disposal

03 October 2024. Vukile Property Fund (JSE: VKE) confirmed its intention to accept an improved cash offer for its 28.8% stake in Lar España Real Estate following careful evaluation of its options. Vukile’s investment in Lar España, held through its 99.5%-owned Spanish subsidiary, Castellana Properties, has realised significant value for Vukile shareholders.

The consortium involving Hines European Real Estate Partners III and Grupo Lar Inversiones Inmobiliarias, Lar España’s asset manager, has increased the offer from EUR8.10 per Lar España share to EUR8.30 per share for all shareholders following its negotiations with Vukile.

The disposal will allow Vukile, via Castellana, to achieve an internal rate of return of approximately 45% p.a. since January 2022 in ZAR terms.  This represents an investment return of almost three-times in under three years from the initial Lar España investment.

Laurence Rapp, CEO of Vukile Property Fund, said: “Our ability to identify mispriced assets, both listed and unlisted, and interpret market nuances through our on-the-ground asset management expertise, defined by profound knowledge of the property industry and retail specialisation, inform our capital allocation strategy. Our synthesis of corporate finance and deal-making skills, together with property asset management, underpins dexterity in underwriting retail assets.”

When Vukile invested in Lar España, it was trading at approximately a 48% discount to net asset value (NAV). Vukile quickly identified this investment as a tremendous opportunity because of its asset and market alignment. The investment provided strategic optionality that, in all instances, provided significant potential for capital appreciation while receiving attractive dividends. During Vukile’s time as a significant Lar España shareholder, the share’s discount to NAV reduced materially.

While Lar España shares still trade at almost 19% discount to NAV based on the increased offer price, when viewed from the perspective of the yield on Lar España’s assets, Vukile believes the negotiated offer price presents an opportunity to redeploy capital into other strategically aligned and financially accretive opportunities with potentially better yields at significantly lower operational and deal execution risk.

While some in the market may have anticipated a counterbid, having considered all options, the complexity, cost and execution risk of doing so made this a less optimal solution. “This decision reflects Vukile’s disciplined approach to capital allocation and deal-making,” notes Rapp.

The company remains committed to its growth strategy in Spain and the Iberian Peninsula, where it has established a significant presence and pipeline of opportunities. From a standing start seven years ago, Vukile has grown Castellana to become the fifth biggest retail property owner in Spain. It is set to become the third largest by the end of 2024 and is well on its way to growing the largest retail property portfolio across the Iberian Peninsula.

Vukile’s acceptance of the Lar España offer comes after it launched the natural expansion of its Spanish growth into Portugal with the pre-funded acquisition of three shopping centres, which closed earlier this week. The transaction takes Vukile’s exposure to the Iberian Peninsula to 64% of its assets.

Following its recent capital raise for several well-progressed deals that Vukile is evaluating, and given it has a significant pipeline of opportunities with a number under active consideration in both Spain and Portugal, Vukile is confident that the proceeds from the offer will be redeployed in line with its expansion strategy in these key markets.

“By accepting the Lar España offer, Vukile is realising a substantial return for shareholders while maintaining its focus on strategic growth initiatives. Vukile is well-positioned to create further value for shareholders through disciplined investment and active asset management,” concludes Rapp.

 

Growthpoint to sell its stake in Capital & Regional to NewRiver

by

Growthpoint simplifies its business as it agrees to sell its stake in Capital & Regional to NewRiver.

25 September 2024 : Growthpoint Properties (JSE: GRT) has conditionally agreed to dispose of its entire 69% shareholding in Capital & Regional (C&R), which is dual-listed on the London Stock Exchange and the Johannesburg Stock Exchange and invests primarily in UK community-focused shopping centres. The proposed disposal reflects Growthpoint’s strategy to simplify its business and optimise its international investments.

Growthpoint’s disposal decision forms part of a broader transaction in progress whereby NewRiver REIT, which also invests in UK shopping centres, has announced its offer to buy all the issued and to-be-issued C&R shares for a total of GBP147 million (or 62.5 pence per C&R share), of which Growthpoint would receive GBP101.4 million.

In the proposed cash and share transaction, each C&R share would be exchanged for 31.25 pence in cash and 0.41946 new NewRiver shares. For Growthpoint, this would amount to approximately GBP50.7 million in cash and 67.4 million new NewRiver shares, representing an approximately 14% interest in NewRiver, post the completion of the transaction.

Commenting on the proposed disposal, Norbert Sasse, Group CEO of Growthpoint Properties, says, “We still believe C&R is an attractive platform with a high-quality portfolio of assets and strong prospects. However, it has become non-core to our group-wide strategic focus, representing 4.6% of total assets by book value and 3.6% of total distributable income. Given our aim of simplifying the business and optimising our international portfolio, we have clearly stated that we were evaluating all options to maximise the value of our investment in C&R.”

After receiving unsolicited expressions of interest in C&R, Growthpoint contemplated disposal, and NewRiver’s offer represents a favourable 21% premium to both its closing share price the day before its preliminary expression of interest was received on 23 May 2024 and the three-month volume-weighted average price to the same date.

Like all C&R shareholders, under the conditions of the offer, Growthpoint will be entitled to the interim dividend declared by C&R for the six-month period to 30 June 2024 of 2.85pps, expected to be paid on 27 September 2024. On completion of the transaction, it will also be entitled to a further dividend, equivalent to 1.3 pence per C&R share, paid either by NewRiver or C&R, depending on the effective date of the transaction.

Growthpoint will use the cash proceeds to strengthen its current balance sheet and position it to pursue investment opportunities in line with its communicated strategy. It may consider selling down its NewRiver shares in due course in line with its drive to simplify its business and optimise its international investments.

The transaction remains subject to the usual conditions, including the approval of C&R shareholders representing 75% of its shares, with Growthpoint’s approval alone taking this number to nearly 69%.

On completion of the transaction, C&R will be delisted, and 40.6% of Growthpoint’s property assets by book value will be located offshore.

Strong update as Vukile powers ahead

by

Strong update as Vukile powers ahead supported by positive market momentum

Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), is in a strong position and well-placed to take advantage of the tailwinds gaining momentum in its markets, the company said in its pre-close operational update for the first half of its 2025 financial year, which ends on 30 September 2024.

Laurence Rapp, CEO of Vukile, commented, “The period has been defined by exceptional operational performance from the Spanish portfolio, strong and further improving metrics from the South African portfolio, excellent capital market support with oversubscribed capital raises in both equity and debt markets, and securing our first investments in Portugal.”

Off the back of robust performance in the prior financial year with growth in funds from operations (FFO) of 6.7% and 10.5% in dividends per share (DPS), Vukile confirmed it is comfortably on track to achieve at least its guidance for the financial year to March 2025 of growth in FFO per share of 2% to 4% and DPS of 4% to 6%.

The consumer-focused retail REIT’s defensive, dominant South African portfolio delivered strong performance and growth, with trade increasing, particularly in the township (+5.3%) and rural (+3.5%) segments. Trading density growth of 3.3% in Vukile’s South African portfolio exceeded the 2.4% it recorded for the 2024 financial year. Fashion, particularly women’s wear, and pharmacies, bottle stores, health and beauty, sports facilities and gyms, all experienced noteworthy trading density growth. Trading density also climbed in the grocery category.

Like-for-like vacancies remain at a low and stable level of 1.9%. Mall of Mthatha, which transferred into the portfolio in April 2024, is undergoing a major, approximately R200 million upgrade due for completion in February 2025 and currently has a 13% vacancy factor, which is set to decrease materially in the short term. The incorporation of this asset increased the total portfolio vacancy figure slightly from 1.9% to 2.6%.

“We are greatly encouraged by the economic, social and political green shoots and the heightened sense of positivity in South Africa,” said Rapp.

The Spanish portfolio’s shopper numbers increased by 3.7% in the first eight months of 2024 compared to the numbers for January to August 2023. Similarly, sales were up 4.6%. Categories with the highest sales growth include homeware, health and beauty, and food and beverage, followed by solid performances from fashion, leisure and entertainment, and groceries. Its portfolio occupancies of 98.4 are better than the Spanish average for the sector of 94.7%. Rental increases are at spectacular levels of 31.45% on average, 42.43% on new leases and 9.83% on renewals.

Asset management interventions by the skilled on-the-ground team in Spain continued to enhance the extraordinary strength and performance of this portfolio, with the first phase of its value-add project at Valsur Shopping Centre, which introduced a new food and beverage area, boosting footfalls by 16% to all-time record highs.

Rapp points out, “This year’s projected Spanish GDP growth has been increased to 2.5%, following better-than-expected first-quarter data, demonstrating economic strength that specifically supports retail property performance.”

Vukile expanded its Iberian Peninsula footprint, entering Portugal in a milestone transaction concluded at projected cash-on-cash yields of more than 10%, due to close in October 2024. After this acquisition, around 64% of Vukile’s assets will be in the Iberian Peninsula, and nearly 56% of its property net operating income will be in Euros. As in Spain, the assets in Portugal will benefit from Vukile’s signature hands-on, in-country presence delivered by Castellana.

“We are actively exploring growth opportunities in South Africa as well as in the Iberian Peninsula, with its strong consumer confidence and exceptional tourism growth,” confirmed Rapp.

Vukile’s strong balance sheet, proactive approach to funding, and dealmaking dexterity stand it in good stead to deliver on its growth strategy. The capital it raised earlier in September 2024 ensures it is investment ready.

“Decreasing interest rates, increased consumer confidence and spending, and positive momentum in the equity market are positive drivers for Vukile’s business. We are well-positioned to take advantage of the economic tailwinds,” concludes Rapp.