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SA REIT Association

Vukile’s Retail Academy expands into Daveyton Mall

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Vukile Property Fund (JSE: VKE), the specialist consumer-led retail real estate investment trust (REIT), has launched a new multi-tenant emporium at Daveyton Mall as part of the next phase of its game-changing Vukile Retail Academy. The project brings fresh, community-driven retail experiences to local shoppers while helping small businesses grow into sustainable enterprises.

Now in its third year, the Vukile Retail Academy continues to deliver on its founding aim: providing access to formal retail for promising entrepreneurs. Participants receive rent-free premises, fit-out support and hands-on mentorship. The initiative forms part of Vukile’s wider commitment to inclusive growth, tenant diversity and shared opportunity across the retail ecosystem.

Matching retail strategy with community needs is at the heart of Vukile’s singular business model. Its popular, high-performing shopping centres – all 33 of them in South Africa and the 20 retail assets abroad in Spain and Portugal – serve as platforms for local growth in each location. They do this by supporting entrepreneurs, integrating cultural identity, and fostering loyalty through authentic engagement. This customer-centric, community-first approach is changing retail landscape.

“We’re invested in more than shopping centres. We’re invested in the communities they serve. The success of our centres is grounded in understanding local needs, and meeting and exceeding them,” says Laurence Rapp, CEO of Vukile Property Fund. “With a customer-first approach, we co-create retail spaces and experiences that genuinely reflect and serve their unique communities while celebrating local talent, culture, community and innovation. The Vukile Retail Academy is a tangible expression of that philosophy.”

A programme of proven impact

 Launched in 2022, the Vukile Retail Academy has already made measurable impact. The first intake of eight entrepreneurs received 1,035 sqm of retail space to trade from across four shopping centres, along with tailored business and operational support. Mentorship focused on developing a resilient business mindset, enhancing store operations and building customer engagement strategies

The results speak volumes. From the 2023 Dobsonville cohort, Fakizinto Concepts and Zanwabo Cakes became full-time tenants. In 2024, four businesses from Randburg Square – Lonja Beauty Studio, Edenvinne, Vero’s Cake and Jeleni & Phindi Art Studio – have also joined the formal tenant mix, underlining the Vukile Retail Academy’s role in long-term tenant development.

“We’re seeing dreams become sustainable businesses,” says Itumeleng Mothibeli, MD SA at Vukile. “At the heart of the Vukile Retail Academy is a belief in people and potential. This programme is about removing barriers, nurturing talent and actioning our deep commitment to building the next generation of retailers, who will shape the future of South African retail.”

A new shared-format concept

 This year, the Vukile Retail Academy introduces an emporium-style space at Daveyton Mall, bringing five small businesses under one roof. The shared space allows entrepreneurs to share costs, test products and grow visibility in an animated, high-footfall retail setting.

The not-to-be-missed up-and-coming brands in the new emporium, are:

  • Seven Heartbeats: A cultural lifestyle brand blending contemporary fashion with traditional African design.
  • Cossen: African-inspired fashion and footwear with live shoemaking experiences.
  • Thesis Lifestyle: A Soweto-born streetwear brand celebrating township pride.
  • GameOn.Africa: A tech-driven edutainment hub promoting digital learning and innovation.
  • PeaPrido Elegance Events: A Daveyton-based events company delivering personalised, high-quality experiences.

Some of these businesses are expanding from existing markets or online platforms. Each comes with its own story, contributing fresh energy and relevance to the mall’s offering.

Daveyton Mall, first opened in 1993, is one of South Africa’s first township malls. It was recently upgraded and extended by Vukile and stands as a modern reflection of the colourful heritage of its community. The new design celebrates local culture through architectural features, murals and art installations. This culturally rich environment creates a powerful platform for a retail experience that truly belongs to its people.

Reflecting its role as a community anchor, the mall’s redevelopment included significant local participation, resulting in a retail centre that does more than serve the community; it reflects and empowers it. Its trailblazing new emporium of entrepreneurs extends this ethos.

Building a fresh retail ecosystem

 At Vukile, retail is about people before products. The Vukile Retail Academy reflects its longer-term ambition to help shape a retail sector that mirrors the depth and potential of South Africa’s entrepreneurial talent.

“This flagship initiative is rooted in our commitment to building a retail ecosystem where local talent thrives and communities feel seen, supported and proud. It’s about creating lasting partnerships for a better South Africa,” adds Rapp.

MSCI South Africa Green Annual Property Index 2024

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The MSCI South Africa Green Annual Property Index for 2024 continued to reinforce the investment rationale for sustainable, resource-efficient real estate.

Published annually since 2016 in collaboration with the Green Building Council of South Africa (GBCSA) and sponsored by Growthpoint Properties (JSE: GRT), the index offers an independent and globally aligned assessment of how green-certified properties compare to their non-certified counterparts in terms of investment performance.

For 2024, the index showed that green certified Prime & A-grade offices produced a total return of 10.1% which was 120bps above that of non-certified office assets of a similar quality during the year. Since the index’s launch in 2016, green-certified offices have outperformed non-certified assets by a cumulative 28.2%, delivering superior capital growth and operational resilience.

Timothy Irvine, Head of Asset Management: Offices at Growthpoint, which is at the forefront of green-building certification in South Africa, comments, “The 2024 MSCI South Africa Green Annual Property Index reaffirms the investment edge of green-certified commercial real estate. The long-term outperformance of green certified offices signals growing occupier and investor preference for sustainable, resource-efficient real estate and reinforces the strategic competitiveness of portfolios with a strong green building footprint.”

Published in April 2025, the 2024 index covered a sample of 242 prime and A-grade office properties with a combined value of R54.7 billion, including 122 green-certified buildings. Reflecting the growing momentum of green certification beyond the office sector, the index also captured the performance of 33 green-certified retail properties.

“The index has shown over several years that green-certified offices typically have better investment returns than non-certified offices. This year’s expansion to include the retail sector is exciting for us and reflects our commitment to supporting the drive for green across all building typologies. Through this expansion, we’re looking forward to tracking these results, and bringing new insights to market,” says Georgina Smit, Head of Technical, GBCSA 

2024 was another year of outperformance for green certified property

This outperformance of green-certified Prime and A-grade offices was driven by a higher capital growth on the back of a 34% higher gross income per square meter, a significantly lower operating cost to income ratio (39% vs 46%) and a 30bp lower capitalisation rate.

For green certified retail property, the outperformance was similar in 2024. Green certified retail property delivered a total return of 13.2%, 130bps higher than that of non-certified retail with the outperformance driven by an 80bp lower capitalisation rate and a 18% higher net operating income per square meter. Similar to the green office sample, certified retail properties also boasted a lower cost to income ratio of 41% compared to the 44% of its non-certified peers.

Green certified offices also had a lower discount rate, driven in part by a lower vacancy rate (11.1% vs 14.8% for non- Green certified prime and A-grade offices) – reinforcing the premium placed on green office accommodation by occupiers and valuers alike.

Long term outperformance

Since the index’s inception in 2016, prime and A-grade green-certified offices have consistently delivered stronger capital growth than non-certified office properties each year, underscoring the resilience and value proposition of sustainable buildings. Green-certified office assets have outperformed their-noncertified counterparts by a cumulative 28.2%.

While the office sector has led the way in the adoption of green certification, the performance advantage is becoming increasingly evident in the retail segment as well—where a similar return differential emerged in 2024, signalling broader market recognition of the investment benefits of sustainable real estate,

“After nine years of consistent outperformance both on valuations and income, there can be no doubt about the fact that certified properties deliver higher returns to investors. The next step in this journey is to show that certified properties better mitigate Climate Risk and MSCI is well equipped to do that,” says Eileen Andrew from MSCI.

Lisa Reynolds, GBCSA CEO, adds, “Our longstanding partnerships around this index are a deep and a solid real investment into providing the property sector with the data and confidence required to build the investment case for green buildings. For some, the question was “Why should I invest in making my property portfolio green?”, now it becomes, ‘Why would I NOT invest in green?’.”

As a leader in sustainable commercial property, Growthpoint holds one of South Africa’s largest and most varied portfolios of green-certified buildings. These assets not only lower the company’s carbon footprint but also support long-term climate resilience central to its ESG strategy. With a clear goal to reach carbon neutrality across its portfolio by 2050, Growthpoint continues to lead in sustainable real estate.

Chief Operating Officer Engelbert Binedell says data from MSCI and the GBCSA is key to shaping Growthpoint’s approach. “We use this data to benchmark performance, refine energy and net-zero targets, and realise the full financial and environmental value of green certification. This data-driven strategy ensures steady progress while meeting the expectations of investors, tenants and society for a low-carbon future.”

Growthpoint’s new Sandton Drive Link Bridge

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Growthpoint’s new Sandton Drive Link Bridge connects assets, access and attractions in Sandton Central

Growthpoint Properties is proud to announce that construction has commenced on the Sandton Drive Link Bridge – a project set to significantly enhance safety, accessibility and connectivity in Sandton Central.

This landmark bridge, which will provide an easy and direct pedestrian route over busy Sandton Drive between Growthpoint’s The Place at 1 Sandton Drive office building and the iconic Sandton City shopping centre, is a game-changer for the precinct. It will provide a secure pedestrian crossing while seamlessly linking key locations within this dynamic hub. It also introduces an eye-catching new landmark.

Funded and driven by Growthpoint Properties, South Africa’s leading JSE-listed real estate investment trust (REIT), the R26 million bridge is more than just a safe crossing point. It is a statement of innovation, urban design and community commitment. The bridge physically and symbolically unites both sides of Sandton Drive, integrating offices, residences and retail spaces into a more cohesive precinct.

Designed for safety, built for the future

The Link Bridge is engineered to be safe, durable and maintenance-free. Its unique architectural design features an angular balustraded walkway clad in stainless steel making it both a functional and aesthetic enhancement to the area.

At its core, the bridge boasts a central covered glass viewing deck offering breathtaking views of both bustling Sandton and the city’s spectacular sunsets. The eco-friendly illuminated viewing deck is a dynamic feature that can change colour to mark seasons, celebrations and events taking place in the area.

The stainless-steel sections and glass box are currently being manufactured off-site in multiple parts while the concrete support columns and walkway are being constructed beside Sandton Drive between Rivonia Road and Alice Lane.  Then, the prefabricated parts of the bridge will be assembled on-site.

A strategic investment in Sandton’s growth

“We are thrilled that this long-held vision is now a reality,” says Neil Schloss, Head of Asset Management at Growthpoint. “This bridge delivers on Growthpoint’s promise to tenants of The Place at 1 Sandton Drive. Together with our partners on this journey – Sandton City, Sandton Central Management District and the City of Johannesburg, among others – we’ve overcome numerous obstacles to create a vital new link.”

Timothy Irvine, Growthpoint Head of Asset Management: Offices, says the new Link Bridge not only boosts the value and attractiveness of The Place at 1 Sandton Drive but enhances mobility and fosters greater connectivity of the entire area. “For tenants of The Place, the bridge adds an invaluable amenity to their prime location. The investment underscores Growthpoint’s commitment to providing exceptional business spaces with sought-after features that set our office properties apart in the South African market.”

Supporting Sandton’s key stakeholders

Sandton City has been a vital supporter of this project, recognising the bridge’s importance as a new link, giving their visitors open access to a spectacular vantage point with views of the vibrant hub that has grown around this exceptional shopping centre while also prioritising their pedestrian customers’ safety and convenience.

Dimitri Kokinos, Liberty Two Degrees Asset and General Manager for Sandton City and Nelson Mandela Square, says, “We welcome this new addition, as a transformative step towards enhancing urban connectivity.  We believe the bridge will provide a safe and efficient route for pedestrians, making access into Sandton City from Sandton Drive South side even easier. This is a great move for the overall Sandton Central precinct.”

Elaine Jack, City Improvement Manager for Sandton Central, adds, “Sandton Central welcomes this substantial enhancement to the precinct, as the Link Bridge will create direct, safe pedestrian access between Sandton City and The Place on Sandton Drive. Growthpoint has always been highly supportive of Sandton Central and the construction of the access bridge further highlights their on-going commitment to the value of the node.”

Public access and security

The Link Bridge will be open to the public from Sandton City during the day, with limited controlled access at night. On the east side of the road, it will be accessible from The Place’s balcony nearest Rivonia Road, leading pedestrians safely across the street and on Sandton City’s upper parking deck near the Woolworths entrance on the west side.

A key group of bridge users will be visitors to the US Consulate in Johannesburg, neighbour to The Place, who will now have a safer and more direct pathway across the road with direct street-level bridge access serving this building.

Investing in premier people-friendly places

Growthpoint Properties has long been a leader in shaping Sandton Central’s skyline, placemaking and public experiences, in addition to investing in real estate, infrastructure and green energy. It already owns a significant portfolio of office assets in Sandton’s core. The bridge is one of several major new investments Growthpoint is making in Sandton Central’s future, shaping a greater, connected and accessible precinct.

Growthpoint’s Link Bridge across Sandton Drive will stand as a testament to a business that goes beyond building structures — shaping stronger, safer, more accessible and sustainable places.

“Thanks to all involved in this initiative over the years, Sandton Central is set to become an even more integrated, convenient and people-friendly place for all who work, live, play and visit,” says Irvine.

Burstone Group FY25

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A year of strategic transformation delivers strengthened balance sheet and new revenue opportunities.

Burstone Group today announced full-year (FY25) results in line with guidance, reporting significant progress in the roll-out of its funds and asset management strategy during a year of accelerated strategic transformation.

Following an internalisation process which was concluded in 2023, Burstone Group has established itself as a fully integrated international real estate business and built a hybrid model of traditional real estate assets stapled with a fund and asset management model to drive enhanced returns.

During the financial year the business strengthened its balance sheet, reducing LTV from 44% to c.36% while maintaining stable operations across South Africa, Europe and Australia.

Burstone Group CEO, Andrew Wooler said:

“The building blocks are in place. We have a sound balance sheet and have built a solid foundation from which to grow.”

Results for the period ended 31st March 2025 were in line with expectations:

  • Cash dividend up 1% to 92.22cps (Mar 24: 89.46cps),
  • Distributable earnings per share (“DIPS”) down 0% to 102.5cps (March-24: 105.7cps)
  • Like-for-like Net Operating Income (NOI) up 2% in SA and up 0.5% (in Euros), respectively.
  • Fee revenue grew by 40% amounting to 10.7% of distributable earnings (Mar-24: 7.3%).
  • Third-party assets under management (“AUM”) increased 6 times to c.R23.4 billion. Burstone Group CEO, Andrew Wooler, continued:

Our results clearly reflect the significant strides we’ve made in the strategic transformation of the business and positioning ourselves for long-term growth. These efforts have given us a solid foundation to navigate an operating environment that remains complex and requires thoughtful, disciplined execution. Given the strength of our pipeline and the momentum we are seeing, we are confident that the next 12 to 24 months will be an exciting and pivotal period for the business.”

Burstone concluded several transformative transactions during the period.

The deals included the formation of a strategic partnership with Burstone’s Pan-European Logistics (PEL) platform and Blackstone, the world’s largest alternative asset manager, with Burstone taking the role of asset manager of the portfolio and retaining a 20% investment in the platform.

Burstone Group’s Australian joint venture (JV) with Irongate Group has entered into a strategic agreement with TPG Angelo Gordon, establishing a new industrial programmatic JV in Australia. This partnership has already completed a series of acquisitions, further advancing Burstone’s industrial and logistics fund management strategy in the region. TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG, brings the backing of one of the world’s leading alternative asset management firms.

South Africa Performance

Burstone’s South African portfolio is mature and stable, and supported a sustainable level of earnings with effective capital recycling executed. The portfolio showed a marginal increase in base LFL NOI of+0.2% YoY.

The South African macroeconomic backdrop has improved. The property sector faces challenges, but there are signs of marginal improvements in the region.

  • Strong letting across the portfolio with notable long dated leasing and early renewals in industrial sector
  • Negative reversions persist, particularly in the office sector, but significant improvement year- over year.
  • Disciplined cost
  • Maintained a stable WALE of 0 years.
  • Concluded sales of R1.0 billion at c.2.5% discount to book value.
Pan-European Logistics (PEL) Portfolio

The Group’s PEL’s performance was driven by a strong, defensive portfolio that has consistently benefited from favourable sector dynamics.

  • 5% base LFL NOI growth in Euros (Mar-24: 6.2%) with growth in contracted rent offset by an increase in vacancies.
  • Blackstone transaction successfully completed on 12 November
  • Strategic launch of Burstone’s European funds and asset management
Australia Performance

Burstone’s Australian operations saw a significant increase in equity AUM to $624 million (up 27% YoY) and solid growth in fee revenue (up 16.7% YoY) while the Irongate Group), remains well positioned to capitalise on a strong pipeline of opportunities.

  • New industrial platform with TPG Angelo Gordon: A$280 million of industrial logistics assets in New South Wales and Queensland. Burstone’s equity investment into this platform, alongside TPG Angelo Gordon, is c.A$20 million (15%).
  • Co-investment with Phoenix Property Investors is performing well, with the Smithfield asset value up c.11% driven by rental uplifts and full occupancy.
  • To date, Burstone have deployed c.A$52 million /R0.7 billion alongside capital partners in the

Wooler commented on the Group’s Australian performance:

“Australia is a good case study of what we’re replicating in SA and Europe. The acceleration of earnings we’re seeing coming out of Australia is proof that our model works. We are adding more partners, we’re putting more equity in, and in the years to come, we will see the flywheel turning with greater acceleration.”

Prospects and guidance

Ongoing global uncertainty and volatility are slowing capital deployment, reinforcing a cautious outlook and supporting measured growth expectations over any near-term boom.

The Group foresees anticipated earnings growth of 2% to 4% for FY26, driven by quality assets, platform scalability, and ongoing strategy execution.

  • Active portfolio management: Continued focus on asset recycling, cost efficiency, and capital expenditure to maintain portfolio quality.
  • South Africa outlook: Modest earnings growth expected, led by retail; office remains challenging albeit with improving metrics; while industrial shows positive momentum.
  • European expansion: Strategic partnership with Blackstone launched the European funds platform. The PEL portfolio will continue to benefit from positive rental reversions, albeit that the occupier market is The Group will focus on creating and executing new platforms and strategies.
  • Australian growth: Strong performance expected ahead, with solid investment income growth expected and Australian management earnings set to at least double.
  • In closing Wooler said:“We are pleased with the progress made across the business and we believe that our integrated international hybrid business model will be a key differentiator as we continue to implement our strategic plan over the next few years.”

 

Spear REIT acquires Berg River Business Park in Paarl

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Spear REIT has announced the acquisition of the Berg River Business Park, a 30,000m² multi-let industrial park in Paarl, Western Cape.

The acquisition value is recorded at R182,150,000, with an initial yield to the Spear platform of 9.35%. The transaction will be settled via a Section 42 asset-for-share arrangement, with the sellers receiving the full value of their equity in Spear shares.

Located at 46 Distillery Street, along the Berg River in the Drakenstein Municipality, the Berg River Business Park serves a mix of tenants across the food, agriculture, wine, and clothing sectors. The area forms part of a growing industrial node in the Western Cape and benefits from its proximity to the N1 highway, enhancing logistical efficiency for its tenants.

Key Features of Berg River Business Park:

  • Strategic Access: Proximity to major routes, including Lady Grey Street and the N1 highway.
  • Security Infrastructure: The park features 24-hour security, CCTV surveillance, and electric fencing.
  • Energy Efficiency: This includes solar power generation capacity, reducing energy costs, and reducing environmental impact.
  • Operational Resilience: Offers a power supply capacity of 3,500 kVA and full load-shedding redundancy.
  • Connectivity: Equipped with high-capacity fibre-optic infrastructure.
  • Flexible Industrial Space: Units designed with high clearance, modern amenities, and ample yard areas to support various operational requirements.

Commenting on the acquisition, Quintin Rossi, CEO of Spear REIT, said: “One of the advantages of Spear’s Western Cape focus is that the entire province presents investment opportunities. This high-quality acquisition marks our entry into the Paarl real estate market and our first investment in the well-established industrial node of Paarl Industrial. We are very pleased with the asset type, the tenant mix, and the solid rental growth prospects that this food and agri-logistics park brings to the core Spear portfolio.”

The acquisition marks Spear’s continued strategy to grow its portfolio in high-performing nodes across the Western Cape, with a particular focus on assets that offer income resilience and long-term capital appreciation potential.

Fairvest Launches Rosebank Quarter

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Fairvest Launches Rosebank Quarter After R30 Million Transformation Project

JOHANNESBURG, South Africa, JSE-listed real estate investment trust Fairvest Limited has officially launched Rosebank Quarter, a newly refurbished mixed-use commercial property in the heart of Rosebank, the R30 million redevelopment was carried out over two years, aimed at bringing the building in line with the growing quality of the precinct.

The launch marks the culmination of months of construction and design work to reposition the asset as a vibrant commercial hub, offering a refreshed mix of office, retail and lifestyle offerings.

The property has undergone a significant upgrade, including a full exterior overhaul with contemporary cladding and integrated lighting that brings the structure to life after hours. Internally, the entrance has been fully redesigned and now features a scenic lift, while the building’s courtyards have been reworked with water features, new paving, planters and seating areas.

Retail elements have also been given attention, with new shopfronts installed throughout and external food stalls creating a more active, pedestrian-friendly interface. Office spaces inside the building have been refurbished to support modern working environments, while the basement now benefits from digital access control and number plate recognition technology.

Fairvest CEO Darren Wilder said the project reflects the company’s approach to enhancing assets in key urban locations.

“Rosebank Quarter is a strong example of how we reinvest into our portfolio to drive both tenant value and broader precinct upliftment. We’re not just refreshing buildings, we’re strengthening our position in key nodes like Rosebank, where demand for well-located, accessible commercial space continues to grow.”

The asset sits within the fast-evolving Rosebank district, an area that has seen continued growth in both commercial and residential development over the past five years. The redesign of Rosebank Quarter was aimed at meeting this growth with an offering that reflects both the expectations of today’s tenants and the energy of the surrounding neighbourhood.

Founder and Architect at Oblik Architecture and Design, Mary-Lee Nicoloudakis, who developed and oversaw the redesign, said the vision was to create a building that felt cohesive with its environment while offering a new level of finish.

“There was a strong emphasis on giving the building a renewed identity, one that felt authentic to Rosebank’s urban character, but with enough warmth and human scale to make it comfortable and inviting. The use of Art Deco cues, in a modernised way, allowed us to blend heritage and future.”

The building is already seeing strong leasing interest, supported by its upgraded amenities, ample parking and growing footfall in the area. A diverse tenant mix is expected to include cafés, food outlets, and boutique retailers, along with a base of small to mid-sized businesses occupying the office components.

In line with Fairvest’s broader environmental strategy, the company has begun early-stage solar installation on the building and is rolling out smart metering across larger electrical loads to better manage energy usage. These measures form part of its long-term ESG goals, particularly around reducing carbon emissions across its urban asset base.

Today’s launch was attended by project partners, stakeholders and current tenants, many of whom remained operational throughout the refurbishment process.

“The patience and support of our tenants during the construction period has been invaluable,” said Wilder. “It speaks to the strength of the community we’re building here, one that is invested in what Rosebank Quarter can become.”