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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.

Growthpoint brings warmth and dignity to Tembisa learners

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Growthpoint and Threads for iKasi partner bring warmth and dignity to Tembisa learners

Empowering young futures through staff-led community engagement

Growthpoint Properties (JSE: GRT), in collaboration with the non-profit organisation Threads for iKasi Foundation and on behalf of its employees, has donated 50 full winter school uniforms to learners at Ikusasa Comprehensive School in Tembisa, Kempton Park. The handover ceremony, held at the school on Friday 23 May 2025, showed the spirit of employee-driven social impact.

Each complete uniform package includes a jersey, drymac, trousers with shirt, shoes, socks and a winter beanie. These donations are part of Growthpoint’s G² (Growthpoint Gives) programme, which enables the company’s team members to actively participate in upliftment efforts in their own communities.

Ikusasa Comprehensive School is a beacon of resilience and academic ambition in the Tembisa community. With a consistent rise in matric pass rate, increasing from 77.1% in 2021 to an outstanding 95.8% in 2024, the school aims to achieve a 100% pass rate and a 75% Bachelor’s pass this year. Together with its strong academic programme, Ikusasa promotes holistic development through arts, sports, culture and active social awareness campaigns around bullying, substance abuse and health.

The school currently supports many vulnerable learners, including eight child-headed households and 47 orphans. It faces infrastructure challenges and requires greater access to educational resources, technology, and classroom upgrades.

“We are incredibly touched by the generosity of Growthpoint and Threads for iKasi,” says Principal Gladwell Makhoba of Ikusasa Comprehensive School. “These uniforms mean so much more than just clothing – they restore dignity, boost self-esteem, and remind our learners that they matter. The support we’ve received sends a powerful message: our children are seen, they are valued, and they have a community that believes in their future.”

Threads for iKasi, with its mission to create environments where no child is left behind, has successfully rolled out similar initiatives in over a dozen schools in Tembisa. Its model is grounded in restoring dignity through educational support and ensuring that learners are equipped not just academically, but emotionally and socially.

“For me, a school uniform has always meant more than just clothing — it’s a sense of pride, a feeling of belonging, and a quiet promise of potential,” says Khabo Mnguni, Co-founder of Threads for iKasi. “Growing up in the township, I saw firsthand how something as simple as a uniform could change how a child saw themselves. That’s why this mission is so close to my heart. Our partnership with Growthpoint is a golden thread of care, stitched into the futures of these learners. It’s about more than just warmth and appearance — it’s about dignity, confidence, and showing our children that they are seen, supported, and worthy.”

This contribution reflects the heart of the G² programme, which encourages Growthpoint’s staff to lead with empathy and impact.

Shawn Theunissen, Head of Corporate Social Responsibility at Growthpoint Properties. “A Growthpoint team member introduced Threads for iKasi, which brought Ikusasa’s needs to our attention, and we are proud to support their call. In addition to providing vital warmth for children in winter, the initiative is also affirming dignity and supporting learners to focus on their education without unnecessary hardship.”

Growthpoint Properties’ CSR approach is rooted in its commitment to responsible corporate citizenship. Through G², every employee also receives eight hours annually to participate in volunteer activities, making social impact a shared value across the organisation.

“We believe that corporate responsibility lives not just in boardrooms but in every hand helping,” adds Theunissen. “This donation is one small part of our broader commitment to our employees, their communities and to education. We believe that partnerships with educators will yield positive results towards our shared vision of building a better life for all.”