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Growthpoint completes Phase 2 of the Arterial Industrial Estate.

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Growthpoint’s Logistics Portfolio is Bolstered by Completion of Arterial Industrial Estate, Cape Town 

Growthpoint Properties (JSE: GRT) has reached another milestone in its ongoing strategy to improve the quality of its directly held South African portfolio with the completion of Phase 2 of the Arterial Industrial Estate in Cape Town.

Driving its domestic portfolio enhancement, Growthpoint has strategically grown its logistics and industrial assets from 15% to 20% of the total SA portfolio value in recent years.

At the same time, South Africa’s leading REIT (real estate investment trust) has increased its exposure to modern logistics warehouses, the backbone of Growthpoint’s long-term value creation approach in this sector. Modern logistics properties are and now represent approximately half of the portfolio’s gross lettable area. It is also focusing its investment in better performing, higher demand areas of the country, specifically in the Western Cape and KwaZulu-Natal.

A notable stride in this direction is the recent completion of Phase 2 of the Arterial Industrial Estate in Cape Town, adding quality capacity to the sought-after location. With 21,831sqm of additional lettable space, Phase 2 has added six more warehouse units, ranging from 2,945 square meters to 5,713 square meters, catering to a variety of business needs. Together, both phases of the development represents a nearly R400 million investment from Growthpoint.

The estate is experiencing strong demand, with two of the six units in Phase 2 already snapped up supported by strong tenant interest, highlighting the need for high-quality industrial space in the region. Phase 1 of Arterial Industrial Estate, spanning 19,741 square meters is fully let to top names in national and international industry.

“The completion of Arterial Industrial Estate’s Phase 2, and the good demand and take-up of available space it is experiencing, underscores the value we provide to businesses seeking efficient and sustainable industrial real estate solutions,” says Wouter de Vos, Growthpoint’s Regional Head: Western Cape.

“Growthpoint is reporting strong performance in its logistics and industrial portfolio, fuelled by high occupancy rates and a strategic focus on modern facilities. Our well-let logistics and industrial portfolio demonstrates the increasing demand for modern, strategically located facilities,” says Errol Taylor, Growthpoint’s Head of Asset Management, Logistics and Industrial Property.

Arterial Industrial Estate is strategically positioned in Blackheath, a popular industrial hub in Cape Town, offering exceptional access to key transportation routes, including the R300, N1, and N2 highways, as well as Cape Town International Airport and the region’s seaports. This prime location allows businesses to efficiently connect with both local and global markets.

The estate offers 24-hour security, flexible warehouse and office space, and a commitment to sustainability, including solar panels and a four-star Green Star certification from the Green Building Council of South Africa.

“This project reflects a continued and deliberate pivot toward better-performing, future-fit logistics assets and aligns with Growthpoint’s strategy of targeted investment and divestment, and development,” adds Taylor.

Emira’s beehives are a sweet investment in tomorrow

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This May, pinstripes are out and bee stripes are in. The United Nations has declared 20th of May World Bee Day, providing the perfect opportunity for Emira Property Fund to celebrate the success of its own tiniest, busiest VIP – Very Important Pollinator – tenants.

For the last five years, SA REIT Emira (JSE: EMI) has been quietly putting its weight behind an essential global commodity: bees. During that time, the fund’s littlest property investment has become one of its proudest, with 14 beehives at five of its properties, all abuzz with activity.

As Ulana van Biljon, Chief Operating Officer of Emira, explains, “The beehive project was chosen to highlight the decline of global bee populations, because bees and other pollinators are under serious threat, yet they contribute so much to society, as well as to the biodiversity of our properties. Our hives provide a safe place for honeybees to live and breed.”

According to the United Nations (www.un.org/en/observances/bee-day) over 75% of the world’s food crops – nutrient-dense fruit, vegetables, nuts and seeds – and 35% of global agricultural land depends on animal pollinators. The greatest of these are the 20,000 species of bees worldwide.

In 2020, Emira began installing beehives at eight of its properties in Gauteng and KwaZulu-Natal. Subsequently, three of the properties were sold, so currently Emira has 14 hives across five properties.

“Our bee conservation project is a holistic approach to reducing the impact of environmental degradation, which goes beyond planting trees,” says van Biljon.

The first Emira hives were installed at Knightsbridge office park in the heart of the Bryanston business node, and Hyde Park Lane, a tranquil corporate address in Sandton. These sites were selected, according to van Biljon, “due to their safe site location, the biodiversity of the surrounding landscape and the abundance of flowering plants which provide the nectar flow for the bees to produce honey.”

Both bee and human welfare concerns were carefully considered, she adds, noting that the public live in harmony with bees anyway: there are many natural swarms of bees throughout South African cities. Emira’s beehives are managed in a secure, controlled environment, away from areas of heavy foot traffic and clearly sign-posted, while beekeeping activities take place at night.

The results so far have been sweet: the busy little workers have produced 106kg of honey for the March 2025 harvest from four apiary sites, namely Knightsbridge (19kg), Hyde Park Lane (16kg), Wonderpark (53kg) and Albury Park (18kg). A by-product of the conservation initiative, the honey is harvested after the summer months when the bees produce a surplus.

However, no honey could be harvested from the two hives at One Highveld, as both underwent “absconding” at the same time – absconding being a normal phenomenon within honeybee hives, part of a cycle in which an old queen is replaced with a younger one. Any existing honey was then “stolen” by other honeybees, another natural turn of events.

The honey was shared among Emira staff and tenants, creating awareness of the importance of preserving biodiversity. To the delight of the recipients each harvest tasted unique as bees tend to collect nectar within 3km of their hive. This meant Johannesburg honey was crafted largely from exotic garden ornamentals like jasmine, lavender, rosemary and jacaranda trees. Meanwhile, in Pretoria North – where hives are situated at Wonderpark Shopping Centre – an abundance of indigenous plants, acacias, and grassland flowers created honey with darker, flavourful herbal tannins.

“This biodiversity is vital for healthy ecosystems, which support both human well-being and the economy,” says van Biljon. “Healthy ecosystems form the ecological infrastructure of the country, providing clean air and water, fertile soil and food.”

The bees must have realised they were on to a sweet rent-free deal at Emira: in April 2024, passing bees took up residence in a pylon at Boskruin Shopping Centre, not an ideal location. Once they were safely removed by a beekeeper, catch hives were installed to prevent more unplanned bee incursions. These will capture swarming honeybees, allowing them to be relocated to suitable sites within the Emira portfolio, or to commercial farms within the region. Thus, urban sites remain safe, and honeybee stocks are secured.

As part of Emira’s dedication to best environmental, social and governance (ESG) practices, it has also committed to a “No Net Future Loss” policy, conserving and promoting biodiversity across its portfolio and reducing the company’s impact on the environment.

“The country’s natural ecosystems are threatened by land use change, degradation and invasive alien species,” says van Biljon. “Climate change worsens these threats, but healthy ecosystems offer natural solutions that increase resilience. They protect communities from extreme weather events and enhance natural resources, livelihoods, food security and habitats for animals and plants.”

With the beehive project, Emira is putting the bee firmly into business, living up to its reputation as a truly diversified, balanced real estate investment trust.

Dipula reports strong interim results as it marks its 20th year

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Dipula Properties (JSE: DIB) has reported a strong set of interim results for the six months ended 29 February 2025, demonstrating continued strategic and operational momentum in a persistently challenging macroeconomic environment. The property portfolio increased in value by 5% to R10.3 billion, supporting a 6% rise in net asset value. Dipula’s distributable earnings per share (DPS) increased 4.2% for the half year, on track with full year guidance of 4.0% to 6.0%.

Dipula Properties (formerly Dipula Income Fund) is a prominent, diversified South Africa-focused REIT with a long-standing track record of sustainable value creation. As a black-managed property company celebrating two decades of operation this month, and nearly 15 of those as a listed entity, Dipula exemplifies a rare blend of resilience, transformation and consistent delivery that continues to contribute to the real estate sector and South Africa’s broader economic landscape.

The Dipula portfolio includes 161 retail, office, industrial and residential properties across South Africa, predominantly in Gauteng. The portfolio is defensively positioned with retail centres in townships, rural, and urban convenience locations contribute 67% of portfolio income.

Izak Petersen, CEO of Dipula Properties, comments, “Dipula’s operational performance reflects solid delivery and a strongly defensive position in persistently challenging conditions. However, we have felt the impact of higher prevailing interest rates and hedging costs relative to expiring hedge instruments. Encouragingly, we are seeing signs of recovery in the office sector and continued stability in our retail and industrial portfolios, with sustainability initiatives expected to support long-term performance.

Dipula’s revenue for the six months was similar to the prior period at R760 million. Net property income rose 3.0%, constrained by property related expenses, which grew 6.0%, mainly driven by municipal tariff increases. However, cost control remains a management priority, and the total cost-to-income ratio rose marginally to 43.5% (FY24: 42.6%), driven by improved recoveries and Dipula’s solar energy roll-out. The administrative cost-to-income was unchanged at 4%.

Operational highlights included significant leasing activity, contributing to a reduction in overall portfolio vacancies from 8% to 7% during the period. Dipula additionally achieved a weighted average positive renewal rental rate across the portfolio, underpinned by positive rates across the portfolio. The office portfolio recorded a renewal rate of 8.3% followed by industrial at 6.2% and retail at 2.4%. New and renewed leases concluded during the period amounted to R309 million, securing sustainable income streams.

Tenant retention of 79% is lower than in recent periods as Dipula has adopted stricter tenant criteria to improve tenant quality in its industrial portfolio, specifically for mini-units where there is high tenant turnover. Even with this change, Dipula’s industrial vacancies still decreased. Industrial and logistics assets deliver 13% of Dipula’s rental income and with a vacancy of just 4%, this segment remains stable and sought-after.

Dipula’s retail assets remain core to its performance, offering accessible and well-positioned spaces across diverse communities. The retail portfolio reported steady vacancies at 6%.

Offices comprise 16% of Dipula’s income, offering adaptable, well-situated workspace. The office vacancy rate ended the period at notably lower at 19%, down from 23% in the prior interim period, showing clearer signs of recovery starting. “The office improvement is refreshing, however there is still some way to go, and the Johannesburg office market remains oversupplied and highly competitive.”

Dipula has telegraphed to the market that it intends to sell its affordable and conveniently located residential rental units, which currently represent 4% of income. This is to re-allocate capital to the retail and industrial sectors that are core to its business. This portfolio showed a reduced vacancy rate from 10% to 9% over the six months.

Dipula continues to implement value-enhancing asset management strategies. It invested R117 million in refurbishments and redevelopments. Nearly R70 million of this was for income-generating projects, including solar PV, with the remainder allocated to defensive projects. A portion of the proceeds from R125 million in disposals, achieved at a 4% premium to book value, contributed to funding these projects together. While no acquisitions were completed during the period, Dipula has a strategic pipeline of growth opportunities.

“We’re firmly committed to future-proofing our portfolio,” says Petersen. “We are assessing some interesting opportunities which fall within our core focus, a few of which we hope to close in the short-term. Dipula’s installed solar capacity will more than double to approximately 16MW after the instillation of an additional 9MW of new solar projects to be rolled out during this calendar year.”

Dipula benefits from a strong balance sheet and has maintained prudent debt levels. Gearing was stable, at 36.3% compared to 36.1%, and a steady ICR of 2.8 times at the end of the period reflect a consistently well-managed balance sheet. R400 million in undrawn facilities provide additional liquidity.

Commenting of the operating environment in the second half of Dipula’s financial year, Petersen notes that global uncertainty has intensified amid shifting US trade policies and ongoing tariff disputes, which are expected to place upward pressure on inflation and interest rates. Domestically, South Africa faces persistent fiscal, economic and service delivery challenges, with subdued confidence and higher than anticipated interest rates.

“At Dipula, we remain focused on executing our strategic priorities: driving operational efficiency, optimising our tenant base and recycling capital to reinforce balance sheet resilience.” says Petersen.

Redefine strengthens position in uncertain market

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Redefine strengthens position in uncertain market, eyes future upside

Johannesburg, 12 May 2025 – Redefine Properties, a leading South African Real Estate Investment Trust (REIT) with a diversified portfolio locally and in Poland, has reported solid financial results for the six months ended February 2025. The company’s core operating segments delivered organic growth, underscoring the efficiency, durability and quality of its asset platform.

Profitability continues to improve across all regions, driven by improved occupancy levels and disciplined cost management. The group-wide net operating profit margin rose to 76.9%, up from 76.5% in the comparable period, with South Africa at 79.1% and EPP core (Poland) at 77.2%. EPP’s core occupancy reached a near-full 99.2%, while local occupancy also showed steady improvement, signalling the resilience of the leasing market despite ongoing rental pressures – particularly in the local office sector.

Reflecting on the past five years, CEO Andrew König described the period as “a game of snakes and ladders,” shaped by successive global shocks – from COVID-19 to energy crises, warring conflicts, interest rate hikes, and more recently trade tensions. These disruptions have heightened uncertainty, undermining capital market stability and unsettling business confidence that property cycles rely on.

“Despite this, Redefine continues to emerge stronger, reshaping itself to capitalise on the upside to thrive amid complexity,” said König. “Our half-year results reflect measurable improvement, an opportunity-led strategy, and a well-capitalised balance sheet that positions us to weather volatility and drive long-term value creation.”

Some of the notable highlights during the half-year period include an improvement in Redefine’s loan-to-value (LTV) to 41.2%, moving closer to the targeted 38-41% range. A key contributor is the ongoing simplification of the Polish joint ventures – a strategic priority aimed at lowering LTV, reducing equity risk, and alleviating high finance costs. “Disposing of select joint venture interests would free up capital to reduce debt or reinvest into core assets, both of which support earnings and reduce equity risk,” said König.

Debt strategy delivers stability amid shifting macro conditions

 Chief Financial Officer Ntobeko Nyawo said Redefine successfully refinanced the majority of its R3.5 billion in maturing debt in FY2025, with only R500 million remaining. The group’s liquidity position improved to R6 billion from R4.8 billion at 31 August 2024, with ample reserves to cover maturities through to 2026 – a strong buffer as trade-related tariff wars play out.

He noted that 77.6% of total debt is hedged for an average tenor of 1.1 years and the maturity weighted average term of debt is healthy at 3.4 years. Moody’s reaffirmed Redefine’s Ba2 rating with a stable outlook, supporting continued access to debt capital markets. “Our proactive approach, including the successful issue of R2.1 billion in bonds this period, reflects the strength of our debt funding relationships,” said Nyawo.

Industrial and retail outperform, office under pressure

 According to Chief Operating Officer Leon Kok, Redefine’s operational performance reflects its sustained focus on efficiency, asset quality, and tenant retention. In South Africa, overall portfolio occupancy improved to 94.7%, with the industrial sector achieving standout results – just 1.1% vacancy, lease renewal reversions of 4.6%, and high tenant retention, all driven by active asset management.

The retail sector also showed a positive turnaround, recording the first positive lease renewal reversion in over three years at 0.4%, indicating improving tenant sentiment and the strength of dominant, well-located centres.

By contrast, the office portfolio remains challenging due to a national oversupply and constrained rental growth which places pressure on renewal reversions. However, nodes like Rosebank and parts of the Western Cape are seeing strong demand for P-grade space. Kok noted that economic growth and political stability, along with clearer interest rate direction, would be key to unlocking rental growth in the office market.

Redefine has also made major progress in its renewable energy drive. “We increased our installed solar PV capacity by 20% during the period to 52 MWp, and we’re targeting a further 25% increase – around 13.3 MW – over the next 6 to 12 months,” said Kok. “This will bring our total installed capacity to over 64 MWp, in line with our commitment to reduce reliance on the national grid and drive long-term sustainability.”

Strategic progress in Poland underpins diversified growth

 In Poland, Redefine’s EPP core retail platform maintained an exceptional occupancy of 99.2%, with a healthy rent-to-sales ratio of 9.1%, indicating sustainable tenant health and rental affordability.

Redefine’s Polish logistics platform (ELI), co-owned with Madison, is progressing with a planned portfolio division and revised shareholders agreement, which is expected to be finalised by June. Vacancy in this portfolio is projected to decline from 6.6% to 3.5% by June, thanks to recent leasing activity.

In addition, Redefine is advancing its self-storage platform in Poland, with 10,000 sqm of net lettable area currently under development and 38,000 sqm under consideration. The initial €50 million equity commitment is being deployed into these developments, and the company is actively seeking a co-investment partner to match this with an additional €50 million in capital.

Capitalising on opportunities to enhance relevance

 Redefine reaffirms its distributable income per share guidance of 50-53 cents for the period and expects to maintain a dividend payout ratio within the 80-90% range. The company’s strategic focus remains firmly on disciplined capital allocation, simplification of joint ventures, organic growth, and operational efficiency.

“We are not chasing expansion for its own sake,” concluded Konig. “Our goal is to enhance the quality and performance of our current portfolio, maintain liquidity, and continue creating long-term value for our stakeholders. The recent sale of Power Park Olsztyn in Poland, increased ownership in Pan Africa Mall from 51% to 68%, and the completion of its second expansion phase are all examples of how we are optimising our asset base.”

Looking ahead, the group remains focused on harnessing technology as an enabler of more efficient operations and value creation.

Vukile completes R141 million redevelopment of Bedworth Centre

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Vukile Property Fund (JSE: VKE) has completed the R141 million redevelopment of Bedworth Centre in Vereeniging, delivering a high-convenience, community-focused retail destination.

“As a centre of growth, we invest in our portfolio using deep local insight and data analytics that support our shoppers’ experience and retailers’ success,” says Laurence Rapp, CEO of Vukile Property Fund. “The transformation of Bedworth Centre is more than just a physical upgrade, it’s about creating an ecosystem that serves everyone in the value chain, from our investors to our retailers, from our customers to our broader stakeholder communities.”

The Bedworth Centre redevelopment combines enhanced aesthetics and amenities with meaningful upgrades to layout, access and security. Using proprietary customer analytics, the revamp was tailored to ensure the centre remains a cornerstone of convenience and connection for Bedworth Park, including the Vaal University of Technology (VUT) and North West University (NWU Vaal Campus), as well as the South East (SE) and South West (SW) suburbs, the greater Sharpeville, Bopelong and the surrounding growing population.

“At Vukile, our approach starts with understanding the communities we serve. By integrating data with deep local insight, we craft tenant mixes that resonate with the unique needs and aspirations of people in the area. The result is retail that is aligned with daily life. Our retail spaces don’t just exist in communities; they evolve with them,” says Itumeleng Mothibeli, MD SA at Vukile Property Fund.

At the heart of the redevelopment is the introduction of two national grocery anchors, Boxer and Shoprite, both of which opened in late 2024 adding tremendous variety and choice to the local retail experience. These additions, alongside an expanded and diversified retail offering, position Bedworth Centre as the dominant convenience retail hub in the area.

“Thriving retail centres uplift the communities they serve. They provide accessibility, dignity and economic opportunity. This redevelopment reaffirms our commitment to building vibrant, enjoyable spaces that resonate with and reflect their communities. With new anchors and a curated tenant mix, Bedworth Centre is sustainably positioned for the long-term,” adds Mothibeli.

Revamped retail with local relevance and national brands

The updated tenant lineup spans essential goods, services and aspirational retail. Shoppers now benefit from an enriched variety of food, fashion, homeware and lifestyle offerings all under one roof.

New additions to the centre include Shoprite, Boxer, Hungry Lion, Big Joe Pies, Fish & Chips Co, Factory 88, Jam Clothing, Bellama, Blooming Beauty, Pep Home, OK Furniture and Volpes.

A standout feature of the new retail mix is Pepkor Group’s Home.Tech.Sleep concept store, the second of its kind to open in South Africa. Spanning 1,570sqm, it is a one-stop destination for integrated home solutions.

Even more national brands opened their doors in early this year, coinciding with the official launch of the updated centre in April 2025, including Sportscene, Kreme Beauty Lounge, Cash Crusaders, Home Décor Villa, with Shoprite and Boxer Liquor expected to open soon

Integrated community convenience

Further elevating Bedworth Centre’s role in the local ecosystem is the addition of a SARS Client Service Centre, located adjacent to the main parking area. This public-private synergy brings critical government services closer to residents and enhances the centre’s appeal as a holistic service destination.

“The redevelopment of Bedworth Centre is a shining example of Vukile investing with intent,” concludes Rapp. “It’s how we drive performance in our portfolio, partner effectively with our retailers and contribute meaningfully to the communities we serve.”