SA’s next generation aviation hub secures initial investment, development and managing partner 

Growthpoint Properties (JSE: GRT), South Africa’s leading Real Estate Investment Trust (REIT), has made an initial investment with the right to co-invest and develop the new Cape Winelands Airport precinct, marking the start of a strategic partnership to deliver the Western Cape’s next-generation aviation, hospitality and industrial hub.

Growthpoint, which co-owns Cape Town’s signature V&A Waterfront and holds group property assets to the value of R155.8 billion across retail, office and logistics properties, brings deep experience in large-scale, mixed-use and tourism-led precincts to the development of Cape Winelands Airport precinct. The privately-owned airport, set to be developed on the site of the airfield previously known as Fisantekraal, is designed to strengthen the region’s logistics, trade and tourism infrastructure.

The property group’s initial investment is one of several pillars in a long-term partnership for the design, development, delivery and management of the properties within the Cape Winelands Airport precinct. Under the agreement, Growthpoint will assume long-term property and asset management responsibilities across the 450-hectare aviation precinct’s logistics, commercial and hospitality components which excludes the terminal buildings, with the right of first refusal to co-invest in future property developments. It will also oversee the development’s main contractor to ensure institutional standards in transparent governance, financial discipline, positive environmental and social impact integration and development delivery.  

Partnering for pioneering regional growth

Nicholas Ferguson, Managing Director of RSA Aero, the company that owns and operates Cape Winelands Airport, says, “This partnership represents a step-change for Cape Winelands Airport. Growthpoint’s partnership provides the institutional foundation and delivery capacity needed to build an airport precinct of global quality that will serve the region for generations to come.”

The uniquely qualified Cape Winelands Airport team will lead aviation strategy and master planning of the international aviation hub while Growthpoint contributes institutional capital, property expertise and sustainability leadership. Together, they aim to develop a commercially driven world-class airport precinct that meets rising aviation demand, strengthens regional trade and tourism connectivity while exemplifying sustainability.

Norbert Sasse, Group CEO of Growthpoint Properties, comments, “Cape Winelands Airport and its visionary partners have set in motion a powerful catalyst for long-term value creation and a legacy asset for the Western Cape that enhances South Africa’s broader growth story. We are pleased to take part in this opportunity and to contribute to Cape Town’s and South Africa’s sustainable growth.”

The success of the V&A Waterfront – one of Africa’s most visited destinations – provides Growthpoint with first-hand insight into how well-planned tourism infrastructure can drive inclusive economic growth.

“Tourism and foreign direct investment are powerful economic multipliers that go hand in hand and we as Growthpoint have the opportunity to influence the tourist experience at both the Cape Winelands Airport and the V&A Waterfront,” notes Werner van Antwerpen, Growthpoint Properties’ Head: Corporate Advisory. “When tourism infrastructure works sustainably and at scale, jobs follow, cities thrive and communities benefit.”

A new platform for sustainable aviation and development

The airport is expected to sustain approximately 35,000 direct and indirect jobs and could sustain just over 100,000 direct and indirect jobs during its initial 20 years of operation. The development represents an expected initial investment of approximately R8 billion in Cape Town, which will deliver the terminal buildings, runway and a 450-hectare developable estate.

Growthpoint’s initial and right to future investments aligns with its South African capital allocation strategy, which prioritises outperforming locations, precincts and property sectors, including Cape Town and modern logistics facilities, while driving sustainability initiatives towards the goal of carbon neutrality by 2050.  

Cape Winelands Airport aims to be the greenest airport in the world, embedding sustainability at every phase of development. It will function largely with renewable energy and be supported by water reuse systems, driving a carbon-neutral agenda. Growthpoint’s established environmental, social and governance (ESG) leadership will guide the project’s sustainability framework.

“Our commitment to Cape Winelands Airport aligns with Growthpoint’s purpose of creating space to thrive. The project is centred around aviation, but it’s also about unlocking inclusive growth, enabling enterprise and setting new standards for sustainable development,” notes Sasse.

Pending Environmental Impact Assessment approvals, construction of Cape Winelands Airport could begin in early 2026. The development will proceed in phases, starting with runway and safety infrastructure, followed by the terminal, cargo and industrial precincts. On this timeline, the airport is targeted for commissioning by 2028 with capacity for more than five million passengers annually by 2050. The full rollout will unfold over more than two decades, in step with the region’s evolving growth and infrastructure needs.

Infrastructure for the Western Cape’s future

Once operational, Cape Winelands Airport will serve as a second major aviation gateway for the province, easing pressure on existing infrastructure, reducing costs and carbon emissions for operators and welcoming local and international tourists to the Cape’s renowned winelands.

The new airport will also become a new hub for business, hospitality and tourism, supported by the area’s expanding population, dynamic economy and exceptional setting. It will anchor new investment along the Cape Winelands corridor and support Cape Town’s natural expansion northwards – its only viable growth route – with infrastructure necessary for the success of the city’s next chapter.  

“This partnership ensures the Cape Winelands Airport precinct is backed by South Africa’s most credible property investor. Together with Growthpoint, we’re not just building an airport – we’re building a long-term platform for investment, innovation and opportunity in the Western Cape,” concludes Ferguson.

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The Greenovate Awards are back for 2025 with more prizes, new categories and an important milestone to celebrate – ten years of inspiring young people to design practical sustainability solutions for South Africa’s built environment.

Entries are open for the prestigious competition, founded in 2015 by Growthpoint Properties in partnership with the Green Building Council South Africa (GBCSA). Since its launch, Greenovate has grown into the country’s leading platform for student sustainability innovation, giving honours and final year students the chance to see their ideas tested against real industry challenges.

A decade of positive impact

 Greenovate was created to bridge the gap between academia and industry. At the time, students were graduating with strong technical skills but little exposure to sustainability in practice. Growthpoint and the GBCSA set out to change that, giving students access to mentorship, real projects and the opportunity to present their research to senior leaders in the property and engineering sectors.

Over the past ten years, Greenovate has done more than launch careers. It has become a recognised talent pipeline for the industry, introducing new thinking and fresh energy into the conversation about sustainability. More than R1 million in prize money has been awarded to students from over nine universities nationwide, across property, engineering and proptech streams.

Winning ideas have gone on to influence the market, with Growthpoint piloting projects such as a smart energy management system developed by student winner Julian Banks. Alumni including Wardah Peters have returned to the programme as mentors, showing how Greenovate has built a community of sustainability professionals and thought leaders.

Mentors and judges say the standard and quality of work has grown steadily. Students are bolder, more practical and increasingly fluent in ESG principles and real-world implementation. For many participants, Greenovate has been a turning point in their careers, giving them confidence to pursue roles in sustainability and the built environment.

What’s new for 2025

 To celebrate its tenth anniversary, Greenovate has added two new awards, each worth R10,000 and sponsored by Growthpoint.

The Sustainability in Action Award will go to the engineering project with the best potential to be implemented within Growthpoint’s portfolio or systems. Judges will be looking for relevance to Growthpoint’s sustainability objectives, ease of implementation and measurable impact on resource efficiency, emissions reduction or operational cost savings.

The Transformative Impact Award will recognise the property, quantity surveying or construction project that demonstrates the strongest alignment with the United Nations Sustainable Development Goals and overall ESG performance. Criteria include clear links to SDG targets, contribution to ESG indicators and measurable impact on global sustainability priorities.

These new prizes add to an already significant prize pool. The top three projects in both property and engineering will receive R40,000, R20,500 and R14,000 respectively. The competition also offers the coveted IFC prize linked to EDGE Expert Accreditation, and top students benefit from GBCSA Accredited Professional candidate courses.

Platform for a more sustainable future

 Finalists present their projects to an expert panel of judges, and winners are announced at the Greenovate Awards gala dinner. Top teams are also invited to participate at the Innovation Stage at the annual GBCSA Convention – a career-defining opportunity to showcase their work to business leaders and influencers.

“Reaching the ten-year mark with Greenovate is a proud moment for Growthpoint. This initiative has grown into a genuine talent pipeline for the property industry, bringing fresh thinking into how we manage and develop sustainable buildings. What excites us most is seeing student ideas translate into solutions that can be implemented in our world today. By investing in young innovators, we are investing in the future of the built environment and the resilience of our sector,” says Engelbert Binedell, Chief Operating Officer of Growthpoint Properties.

“Greenovate was created to give students a voice in the sustainability conversation, and ten years later it has become a powerful platform for the next generation of leaders. Every year we see young people tackling complex challenges with creativity and rigour, and that gives us real confidence in the future of green building. The competition has not only shifted student perspectives, it has also influenced the industry by embedding sustainability into education, research and professional practice,” says Lisa Reynolds, Chief Executive Officer of the Green Building Council South Africa.

Greenovate has always been about more than prize money. It is about giving students the confidence and tools to see themselves as future leaders in the built environment, and about creating a platform where students, mentors and senior industry figures engage as equals in shaping a more sustainable future.

Entries for the 2025 Greenovate Awards close on 10 November 2025. The competition’s mentoring day is 26 November, and the judging and gala dinner take place on 27 November. The competition is open to honours and final year students in property studies, construction, quantity surveying and engineering.

This year, as Greenovate celebrates its tenth anniversary, the call is not only to participate but to be part of the next decade of ideas, innovation and impact.

Students can register and find more information at www.greenovatecompetition.co.za/register.

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At night, the city hums with unseen life. Thriving as they always have in spaces created by humans, rodents dart between buildings, feed on scraps and nest in walls. To fight them, people often reach for poisons: small black boxes baited with enticing blocks of chemical death. For decades, anticoagulant rodenticides, poisons that stop blood from clotting, have been the standard weapon against rodents. But the dangerous reach of poisons extends far beyond their targets. When natural predators consume poisoned rodents, they too can suffer internal bleeding, immune failure and death. These poisons have become progressively more harmful as rodents are increasingly genetically resistant to rodenticides. Each new generation of poison is crueller and more inhumane than the last. These toxins persist in ecosystems, reducing local predator populations and threatening biodiversity. Despite their dangers to non-target animals and humans such poisons remain widely available and poorly regulated in many countries.

Recognising this, the South African Department of Agriculture, Land Reform and Rural Development has banned certain rodenticides classified under Toxicity Categories 1A and 1B of the Globally Harmonized System (GHS). These substances, linked to cancer, genetic mutations and reproductive harm, endanger human health, non-target wildlife such as owls, and the wider environment.

JSE-listed Emira Property Fund has responded with a nature-based alternative. In addition to making sure that pest management service providers comply fully with the new regulations at all its properties, it has ventured beyond compliance with an owl and bat box initiative, which provides a sustainable pest control solution that safeguards wildlife and human health. Boxes were installed across seven of Emira properties during September 2025, providing safe habitats for natural pest controllers and a powerful alternative to toxic pest management.

“The owl and bat box initiative forms part of our eco-pest management programme, a biodiversity priority for this financial year and a deliberate move towards safer, sustainable solutions for our properties and their surroundings,” says Ulana van Biljon, Chief Operating Officer at Emira.

Van Biljon emphasises the urgency of the initiative. “These poisons threaten not only human health, but also owls, other wildlife and the environment at large. For Emira, the message is simple: our commitment to the environment means investing in nature-based solutions that work to promote biodiversity.”

Nature as pest control: how the initiative works

 In partnership with EcoSolutions, Emira’s owl boxes offer nesting sites for Spotted Eagle Owls and Barn Owls. Each box type mimics natural nesting conditions, ensuring the birds’ safety and breeding success. These nocturnal hunters are formidable allies in rodent control. A single Barn Owl family can consume hundreds of rats and mice in a breeding season. On top of this, owls control rodents not only through predation but also through behavioural trait mediation, meaning their presence deters rodents and changes their behaviours.

Similarly, bats are highly effective at controlling flying insects. A single bat can consume up to its body weight in insects each night, including mosquitoes, midges and crop pests. What is more, echolocation is another way bats reduce insect populations in a specific area. Their echolocation becomes a predator warning signal to tympanic insects such as some moths and flying beetles, and many respond by avoiding the area. Bat boxes provide safe roosts that compensate for habitat loss and enhance natural insect control. Emira’s installations use purpose-designed boxes, each housing between 100 and 800 bats depending on the design.

“Owl boxes provide effective rodent control and aid conservation while bat boxes promote natural insect control and deterrence and both support conservation and are sustainable solutions,” adds van Biljon.

 The project also promotes ethical, humane bat exclusions in line with the National Environmental Management: Biodiversity Act, as authorised by the Gauteng Department of Agriculture and Rural Development.

Broader biodiversity commitment

 Emira’s new Owl and Bat Box Initiative forms part of the property group’s larger, well-established environmental strategy, which ranges from energy efficiencies to water savings and renewable solar energy. Importantly, the initiative supports Emira’s passionate biodiversity leadership, including greening projects, pollination promotion and indigenous planting, reinforcing Emira’s commitment to environmental stewardship and responsible property management.

In recent years it has planted Senecio Barbertonicus, also known as bush senecio, at its Gauteng properties. These drought-resistant plants are valued for their air-purifying qualities and oxygen-boosting benefits and feeding pollinators during the winter months. Emira also installed beehives at select properties in Gauteng and KwaZulu-Natal, providing safe havens for these valuable little pollinators. It has also added carbon-offsetting spekboom plants to sites across South Africa. Emira also partners with the World Wide Fund for Nature (WWF) and Trees for Africa to plant fruit trees and shade trees.

“These initiatives matter because they protect ecosystems, support our communities and strengthen our positive environmental impacts.  Each small step on our biodiversity journey makes a difference an takes us all towards greater sustainability,” van Biljon concludes.

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Redefine Properties (JSE: RDF), a leading South African Real Estate Investment Trust (REIT), has reinforced its position as an environmental frontrunner with 3 new Net Zero Carbon Level 2: Building & Occupant Emissions (Measured) certifications awarded by the Green Building Council of South Africa (GBCSA).

This milestone brings the number of Net Zero Carbon certified buildings in Redefine’s South African portfolio to nine, the most of any REIT in the country. The newly certified assets include Convention Tower in Cape Town, as well as Alice Lane Phases 1, 2 and 3 and Ballyoaks Office Park, both located in Gauteng.

“Each certification is a testament to our ongoing commitment to sustainability and performance-driven building operations,” says Ursula Mpakanyane, Head of ESG at Redefine. “Through advanced energy optimisation and strategic use of verified carbon offsets, we are demonstrating that meaningful climate action is both achievable and impactful within the property sector.”

These achievements are underpinned by a rigorous evaluation process governed by the GBCSA’s Net Zero Carbon framework.

The GBCSA’s Level 2 certification recognises buildings that maintain net zero operational carbon emissions over a 12-month period. This is achieved through a combination of high-performance energy management, on-site or off-site renewable energy, and, where necessary, verified carbon offset strategies. The process is rigorous, requiring at least 12 months of measured energy data, verified carbon offset plans, and professional assessment against GBCSA criteria.

Redefine’s achievement reflects years of work to embed ESG into every stage of the property lifecycle. Properties were assessed in collaboration with Solid Green Consulting, who developed and executed carbon offset strategies aligned with Redefine’s sustainability-linked goals.

These additional accreditations follow the 2024 certifications for The Old Warehouse and The Terraces at Black River Park, and Commerce Square which achieved the country’s first Net Zero Carbon Level 2 Precinct certification. Prior to that, 90 Rivonia, 2 Pybus, and Rosebank Link all achieved their respective Net Zero Carbon Level 2 (Measured) certifications in 2023. Each asset contributes to Redefine’s long-term vision of futureproofing its portfolio while delivering meaningful value for both tenants and investors.

“These buildings not only offer sustainability in design and operational performance, but they also stand as flagship assets within our portfolio, setting a benchmark for future developments,” Mpakanyane adds.

Redefine is committed to achieving full net zero carbon performance across all new developments by 2030 and across all existing buildings by 2050. The REIT’s latest certifications mark another step toward meeting the United Nations Sustainable Development Goals, particularly Goals 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure), 11 (Sustainable Cities and Communities), and 13 (Climate Action).

With sustainability integrated into its business model and culture, Redefine continues to demonstrate that responsible environmental stewardship and commercial performance can go hand in hand.

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• An 8.8% growth in interim distribution per B share to 23.10 cents
• Interim distribution per A share of 69.66 cents
• Pay-out ratio of 100% maintained
• Like-for-like net property income increased by 5.1%
• Vacancies at 5.5%
• New deal WALE of 47.3 months
• Loan-to-value ratio reduced to 31.8%
• Distribution per B share growth for the year expected of between 8.0% and 10.0%

Fairvest Limited announced results for the six months to 31 March 2025, with an interim distribution of 69.66 cents per A share and 23.10 cents per B share. The latter represents an 8.8% growth rate, significantly outpacing the Consumer Price Index.

Fairvest owns and manages a direct property portfolio comprising 127 retail, office, and industrial properties, valued at R12.5 billion, with an average property value of R98.1 million. During the six months, the Group increased its holdings in Dipula Properties Limited from 5.0% to 26.3%, which was accretive to earnings, loan-to-value and net asset value.

Chief Executive Officer Darren Wilder said: “Fairvest is making consistent progress in transforming its diverse portfolio by improving the quality while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa. This is achieved by disposing of non-core assets and reinvesting in retail-focused properties. Approximately 70% of revenue is already generated from retail properties.

Solid property fundamentals

Fairvest experienced positive letting activity, with 236 new deals and 216 renewals concluded over the six months. Pleasingly, the new deal weighted average lease expiry (WALE) has increased from 36.7 months at year-end to 47.3 months. Positive rental reversions continued to improve from 3.6% to 4.3%. Average gross rentals have increased by 2.5% to R130.69 per m² since year-end. The weighted average lease escalation across the portfolio was stable at 6.6%, with a weighted average lease expiry increasing from 28.6 to 31.0 months. While vacancies have edged up from 4.3% to 5.5%, they remain low, with a tenant retention of 81.3%.

The Group continued to exercise strict control over its expenses, with the entire 8.0% increase in property expenses linked to higher municipal costs. Excluding this factor, operating expenses decreased by 1.9%.

Improving the quality of the portfolio

Fairvest disposed of one industrial property valued at R24 million during the period. The transaction was concluded at an average yield of 9.0% and a 14.3% premium to book value, underscoring its conservative valuation approach. Fairvest continued to invest in the portfolio, incurring capital expenditure of R139.0 million, of which R19.8 million relates to further investments in solar initiatives. The Group also invested R76.6 million in fibre network infrastructure, which earns rental income.

A lower LTV and improved cost of funding

The Group’s net loans of R4.4 billion represent an SA REIT loan-to-value (“LTV“) of 31.8%, a 150bps reduction since year-end (September 2024: 33.3%). The weighted average interest rate for the Group improved by 32bps to 9.38% (September 2024: 9.70%), with a weighted average maturity of 1.9 years.  Fairvest remains well within the Group and portfolio LTV and interest cover ratio covenants. As at 31 March 2025, the Group had cash on hand and undrawn debt facilities of R547.4 million to apply towards growth.

Substantial progress in ESG resilience

The Group has made significant progress with its business continuity strategy during adverse conditions. Currently, around 48.3% of the portfolio GLA has access to either partial or complete backup power.

The Group has also continued to invest in renewable energy, increasing the number of solar plants to 46, with a total installed capacity of 21.9 MWp. These plants provided 16.7% of the combined portfolio’s electricity needs in the six months. Clean, renewable energy generated during this time amounted to R33.1 million. A further eight plants are currently undergoing feasibility assessments, approvals, and implementation, which will add 2.1 MWp of capacity.

Water management remains a significant focus area. A range of water management and water savings projects is underway, including 23 operational groundwater harvesting plants and the strategic installation of 29 smart monitoring equipment to enable early leak detection.

Positive growth expected

CEO of Fairvest, Darren Wilder, said: “The portfolio continues to benefit from the disciplined execution of our strategic objectives – vacancies remain consistently low, tenant quality has improved, and the portfolio remains operationally robust. These solid fundamentals, combined with conservative balance sheet management, position the Group for sustained growth”.

 Given the strong operational metrics and accretive transactions concluded, Fairvest expects distributable earnings per B share to increase by between 8.0% and 10.0% for the 2025 financial year. In line with the Company’s Memorandum of Incorporation, the distribution per A share will increase by the lesser of 5% or the most recent CPI value.

The Board has resolved to maintain the current dividend payout ratio of 100% of distributable earnings.

The retail portfolio is bolstered through several acquisitions

Consistent with its strategy to expand its portfolio of retail assets, Fairvest also yesterday announced the acquisition of five retail properties located in KwaZulu-Natal and the Western Cape. The total value of the acquisitions is R477.7 million with a blended yield of 9.81%. Fairvest concluded agreements to acquire Nquthu Shopping Centre, Ulundi Shopping Centre, Eyethu Junction, and Shoprite Manguzi in KwaZulu-Natal. These shopping centres have key food retailers, including Shoprite, Boxer, and SuperSpar, as anchor tenants.

Fairvest has, in addition, entered into an agreement to acquire Thembalethu Square, located outside George in the Western Cape, which is anchored by Shoprite and Boxer. Fairvest owns 51% of the issued shares in the new acquiring company.

The new shopping centres will add 34 118m² of gross lettable to the retail portfolio.

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Spear REIT Limited (SEA:SJ), the Western Cape-focused Real Estate Investment Trust (REIT), has announced its results for the financial year ended 28 February 2025.

Amid South Africa’s challenging macroeconomic landscape, Spear has demonstrated resilience, achieving significant milestones in asset value growth, financial and operational performance.

 FY2025 Highlights:

• Distributable income per share (DIPS): Spear achieved DIPS growth of 3,08% aligning with the mid-range of management’s guidance for the year.
• Net asset value per share (NAV) growth: Spear NAV per share increased by 3.57% to R12.20.
• Completion of R1.15 billion transaction: Spear successfully completed the acquisition of 13 prime real estate assets within the Western Cape, valued at R1.15 billion at acquisition date. The transaction was completed ahead of schedule and under budget. This strategic acquisition expanded Spear’s asset base and positioned the company for long-term growth.
• Asset value growth: The portfolio grew by 19.54% from R4.6 billion in FY2024 to R5.5 billion in FY2025, highlighting the effectiveness of the company’s active management strategy.
• Market capitalisation: Spear’s market capitalisation increased by R1 billion, reaching a total of R3.3 billion at year-end, a testament to strong investor confidence and future growth prospects.
• Occupancy rate: The company saw an improvement in its occupancy rates, which increased by 388 basis points to 97% across its core portfolio by the end of FY2025 compared to FY2024. This increase was driven by strong leasing momentum and tenant demand surpassing supply.
• Rental reversion: Spear achieved a positive rental reversion of 4.18% across its portfolio in FY2025, a clear indicator of the company’s ability to drive value through hands-on asset management.
• Loan to value (LTV) ratio: Spear continues to maintain a robust balance sheet primed for growth, with a 27.09% LTV ratio and an Interest Coverage Ratio (ICR) exceeding three times.

Speaking at the results presentation, Chief Executive Officer Quintin Rossi, commented on the strategic achievements of the year. “FY2025 has been transformative for Spear. Despite a challenging macroeconomic environment, we have shown resilience through our disciplined portfolio management and strategic acquisitions. The completion of the R1.15 billion acquisition ahead of schedule and under budget is a testament to our team’s commitment to operational excellence and long-term value creation. We are confident that these initiatives will continue to position Spear on a firm foundation to achieve the long-term strategy of the business.”

Chief Investment Officer Kim Pfaff-Karg further highlighted the company’s investment and long-term vision. “Looking ahead, we remain committed to expanding our portfolio within the Western Cape, South Africa’s highest performing property market. Our strategic objective is to grow our asset base to R15 billion over the next 7 to 10 years, while maintaining our disciplined value investment approach to continuously build a robust and defensive portfolio.”

Chief Financial Officer Christiaan Barnard provided an in-depth overview of the company’s financial performance. “We are pleased to report a 12.21% increase in group revenue compared to FY2024, driven by the successful integration of the Western Cape Portfolio acquisition. This, combined with strong rental collections of 98.59%, demonstrates the stability and resilience of our income streams.” Our distributable income per share (DIPS) increased by 3.08% to 85.55 cents for the year, while the total distribution per share (DPS) also grew by 3.06% to 81.27 cents. This was made possible through proactive and hands-on financial management and effective debt portfolio management, including the refinancing of debt at more favourable terms.”

Spear maintained an annualised payout ratio of 95%, strongly conveying its commitment to returning value to shareholders while maintaining sufficient financial flexibility for continued growth.

Spear’s acquisition of the new Western Cape Portfolio for R1.15 billion in October 2024 marked a transformative milestone, adding 13 prime real estate assets, including industrial, retail, commercial, and mixed-use properties. Notably, it introduced medical and life sciences retail assets for the first time, broadening Spear’s investment horizons.

The transaction delivered an initial yield of 9.46%, which increased to 10.1% after factoring in a once-off transaction fee. This acquisition further enhanced Spear’s geographical diversification, with a strong focus on the Cape Town Metropole.

The success of the Western Cape can be attributed to its accountable and effective administration. The region consistently exemplifies strong governance, with the City of Cape Town receiving top honours in both the 2024 Municipal Financial Sustainability Index and the Governance Performance Index (GPI). This commitment to transparency and integrity has fostered a stable environment for investment and growth.

Additionally, the Western Cape Provincial Government and local authorities have made significant strides in driving economic development, with substantial investments in infrastructure, job creation, and energy security. These initiatives have not only enhanced the region’s appeal to investors but have also strengthened its resilience amidst challenging economic times.

Spear’s commitment to its Environmental, Social, and Governance (ESG) policy continues to gain momentum with its PV solar rollout. As of FY2025, Spear has successfully installed solar PV systems across 38% of its portfolio, with plans to increase this to 64% by the end of FY2026. Spear’s total commissioned solar capacity now exceeds 9.4MW, generating an impressive 10.1MW across its portfolio.

The company is actively investigating energy-wheeling projects, aimed at facilitating the transfer of electricity between its owned assets. These initiatives are expected to mitigate rising electricity costs while significantly bolstering energy security across Spear’s portfolio.

Chief Operating Officer, Cliff Toerien commended the invaluable contributions of the Spear team in driving the company’s success throughout the financial year. “The Spear team has demonstrated their ability to asset manage favourable operational outcomes, drive solid portfolio performance through proactive and early engagement leasing strategies and strategic asset management. Our leasing teams have capitalised on improved market conditions, leading to improved occupancy rates and tenant retention across the portfolio. Additionally, our proactive approach in enhancing our rental income and optimising operational efficiencies contributes to our stable financial metrics and positions us well for sustained growth.”

In a strategic step to further strengthen its leadership, Spear recently announced the appointment of Joan Solms, a highly regarded property and finance expert, as a non-executive director to its Board of Directors, effective1 April 2025. This appointment reflects the company’s commitment to strengthening its governance and leveraging top-tier expertise to drive continued growth.

 Outlook for FY2026

Looking to FY2026, Spear expressed confidence in the strength of its portfolio and its ability to generate consistent and predictable returns. The company’s continued focused strategy on the Western Cape positions it well for further growth, with a pipeline of both greenfield and brownfield developments.

In a separate announcement released via SENS on 21 May 2025, Spear announced the acquisition of Berg River Business Park in Paarl for R182.15 million. The 30,000m² multi-let industrial park, located in the Paarl Industrial node, will be acquired through a Section 42 asset-for-share transaction and is expected to deliver an initial yield of 9.35%. The acquisition aligns with Spear’s Western Cape-focused strategy and marks the REIT’s first entry into the Paarl real estate market.

Spear’s management forecasts a 4% to 6% growth in Distributable Income per Share (DIPS) for FY2026 subject to certain qualifications, while maintaining a dividend payout ratio of 95%.

“We are confident that our unwavering strategic focus on the Western Cape, together with our initiative-taking approach to portfolio management, will continue to generate and drive sustainable value for our shareholders in the years ahead. This will result in consistent asset value growth and sustainable, credible and predictable financial and operational performance,” Rossi concluded.

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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.

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Hyprop Investments, a specialist property retail fund listed on the JSE and A2X, published strong half year results for the period ended 31 December 2024, reporting double-digit growth in distributable income of 14.5% to R765 million and 14.4% increase in distributable income per share to 201.4 cents. The Group declared an interim dividend of 113.43 cents per share, equating to 95% of the distributable income from the SA portfolio for HY2025.

“The solid performance for the period is a result of the transformative strategic priorities outlined in 2018. The improved trading metrics of our portfolios affirm our centres’ relevance in their respective markets, coupled with our shoppers’ loyalty and resilience during the challenging economic times,” says Hyprop CEO Morné Wilken.

“Our confidence is based on the fact that our centres in South Africa and Eastern Europe are located in key economic nodes and supported by our management teams who have strong retail property expertise.”

For the period, Hyprop maintained a strong liquidity position and held R807 million of cash and R1.1 billion of available bank facilities. As a result of the recent sale of its sub-Saharan Africa portfolio to Lango Real Estate in exchange for shares, Hyprop has been released from all guarantees and commitments to the lenders relating the Africa debt. The balance sheet reflects a steady loan to value (LTV) ratio at 36.3% and cash collections from tenants in South Africa and Eastern Europe at 99.8% and 100.8% of net billings, respectively.

South African portfolio

“All key trading metrics were positive in the six months to end-December 2024. There was a slight increase in vacancies to 2.4% (excluding Pick n Pay at Hyde Park Corner, where Checkers has been secured as a replacement tenant), which is mainly due to rightsizing some anchor tenants’ stores which is in line with strategy. The low vacancy rate creates flexibility to improve and optimise the tenant mix,” Wilken says.

Tenants’ turnover rose 4.9% compared to the same period in 2023, while trading density (rands per square metre per month) lifted by 4.4%.

In this period, management focused on pursuing organic growth opportunities, such as the Somerset Mall expansion and the development of satellite offices around CapeGate Shopping Centre on a leasehold basis with development partners SOM and Giflo.

At Canal Walk, Western Cape’s only super-regional, new concepts such as the first JD Sports in the country, the first stand-alone Silki store in South Africa, and the maiden flagship store for Shift Espresso Bar were introduced. After rightsizing, the Edgars store on the first floor is trading extremely well, and the space it has vacated has been re-let to Jet, Home. Tech. Sleep. and another national tenant.

Somerset Mall is making good progress on its two-year expansion project to add 5 500m² of GLA for 50 new stores, retile and improve the centre’s flow. CapeGate’s initiatives to enhance the overall shopper experience included the installation of an advanced audio system and improved signage. The roof is being refurbished to enable the installation of 5 MW of solar panels. The centre management team at Table Bay Mall has been strengthened, following its acquisition in Hyprop’s 2024 financial year.

In Gauteng, Rosebank Mall has introduced several unique concepts and completed various projects, including upgrades for Tap & Go/Apple Pay at all pay stations and the control room, as well as the installation of e-hailing screens in the waiting areas. A new Checkers FreshX store is under construction at Hyde Park Corner and is scheduled to open in July 2025. Clearwater Mall, Woodlands and The Glen opened several new stores, all enhancing each centre’s tenant mix.

The SA portfolio’s distributable income grew to R454 million in the six months to end-December 2024. Excluding Table Bay Mall, rental and other lease income increased by 4% compared with the same period in 2023 and total revenue was up 4.7%. Utility costs were lower than in the comparable period, due to the reduction in loadshedding and the additional solar plants commissioned at Woodlands, Clearwater and Table Bay Mall. Net property income increased by 18.6% (10.7% excluding Table Bay Mall) over the first half of the 2025 financial year.

Eastern Europe portfolio

Tenants’ turnover grew 8.8%, with trading density increasing by 7.1%. There is strong demand for space in Hyprop’s four centres, which is reflected in the modest 0.2% vacancy rate at 31 December 2024.

City Center one West completed an extension and upgrade of its food court, introducing five new restaurants, while City Center One East, The Mall and Skopje City Mall attracted several high-profile tenants. At Skopje City Mall, Cineplexx renovated its cinema halls and successfully launched M House, a new roastery café, enhancing the food court’s offering.

Distributable income from the EE portfolio was R308 million, an increase of 34% over the comparable period, despite the rand strengthening by 4% against the euro. In euros, total revenue increased by 11%, due to indexation increases and strong growth in turnover-based rentals. Property expenses rose 9%, mainly because wages across the region increased, resulting in a 12% improvement in operating income.

ESG

Various energy initiatives are being pursued to manage energy costs and carbon emissions and ensure uninterrupted trading. As previously communicated, power purchase agreements (PPA) for solar energy are in progress. To protect the supply of water, backup tanks are being installed at Gauteng centres, while similar initiatives are planned for the Western Cape centres, based on recent water audit findings. Over the last five years Hyprop reduced its electricity usage by 29.6% and water consumption by 10.2%.  Five of Hyprop’s centres have achieved net zero waste status and diverted 544 tonnes of organic waste from landfills.

The Group’s total contribution towards CSI projects in the six-month period was R7.7 million.

Outlook

Wilken said, “Hyprop’s management team will pursue its five strategic initiatives: pursuing new and organic growth opportunities; repositioning in South Africa and Eastern Europe to maintain the centres’ dominance and grow market share; annually review and, if appropriate, recycle assets; implement sustainable solutions to offset infrastructure challenges in South Africa; and protect the robustness of the balance sheet.”

Hyprop expects to meet the higher end of its guidance communicated in September 2024 of a 4% to 7% increase in distributable income per share for the full year to 30 June 2025.

The Group’s board has decided to increase its dividend payout ratio to a payment of an interim dividend equivalent to 95% (previously 90%) of the distributable income from the SA portfolio and payment of a final dividend on finalisation of the Group’s annual audited results, so that the total distribution for the financial year (including the interim dividend) is equivalent to 80% (previously 75%) of the Group’s distributable income from the SA and EE portfolios.

“As a business, we are confident in our ability to continue our growth trajectory, supported by the strength of our retail centres in South Africa and Eastern Europe. We are optimistic about the exciting projects in our pipeline, which align with our strategic priorities and will drive sustainable value for all our stakeholders,” concludes Morné Wilken.

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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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Growthpoint Properties Limited (JSE: GRT), South Africa’s leading real estate investment trust (REIT), today announced it is commencing a landmark residential and retail development, Olympus Sandton, in partnership with leading luxury residential developer Tricolt.

Olympus Sandton will be situated in the mixed-use Sandton Summit precinct, anchored by the Discovery Head Office on the corner of Rivonia Road, where Katherine Street becomes Sandton Drive. This strategic investment aligns with Growthpoint’s vision to create South Africa’s premier walkable mixed-use precinct, capitalising on Sandton’s status as Africa’s leading financial district.

Growthpoint has been rolling out different elements of the Sandton Summit vision for over a decade now, and Olympus Sandton is its first development positioned to capture the increased demand for residential property in Sandton Central.

The R2bn-plus Olympus Sandton development will comprise two towers. The first residential tower of 26 storeys will be the first phase of the development along Rivonia Road. It will include a premium dining experience from Marble Hospitality Group on one of the tower’s upper floors, as well as its extraordinary Pantry convenience retail offering in Grade-A ground floor retail space. The second phase is a tower of at least 16 storeys, located east of the first.

The sale of the development’s more than 400 residential apartments by Tricolt has commenced and will launch to the public on 27 February 2025, with prices starting from R1.49 million. Together Growthpoint and Tricolt will retain ownership of the two retail sections of the tower. Construction of Olympus Sandton is estimated to start in the latter half of 2025.

Sandton Summit is situated at the crest of Sandton Ridge, which is the highpoint of the area. Olympus Sandton’s 26-storey tower, although not the tallest building in the area, will become the highest in Sandton, offering unmatched views across Johannesburg and beyond.

Neil Schloss, Head of Asset Management South Africa at Growthpoint Properties, says: “We believe that commencing the Olympus Sandton development is well-timed for the reawakening of the powerhouse that is Sandton Central, and aligned with its accelerated transformation into a vibrant neighbourhood as it evolves with the trend of people wanting to live closer to workplaces and amenities, to offer an exceptional mix of residential, office, retail and other types of properties.”

Timothy Irvine, Growthpoint’s Head of Asset Management for Offices, adds, “Sandton is experiencing a significant revival. After years of office downsizing, companies are now maintaining their physical presence and even starting to grow it again as return-to-office becomes standard practice. Vacancy rates in Growthpoint’s office portfolio are declining nationwide, with Sandton — the country’s cosmopolitan business capital — showing the start of a particularly promising recovery. Despite a slow initial post-pandemic resurgence, the district is adapting not only its office spaces to meet growing demand but its entire lifestyle, with more living and gathering spaces.”

Growthpoint is among those leading Sandton Central into an even more vibrant future. Taking advantage of other opportunities arising from increased demand for residential property in Sandton Central, in line with the trend of living closer to offices, Growthpoint also recently sold its 151 on 5th building in Sandton to a residential developer. Growthpoint is also investing in taking Sandton into a new green era with its revolutionary e-co₂ solution launching at 10 Sandton office buildings in mid-2025. The e-co₂ scheme will provide tenants with access to wheeled renewable hydro, wind and solar electricity at fixed escalations, sharing the benefits of Growthpoint’s milestone Power Purchase Agreement (PPA) for renewable energy, with which it secured 195GWh of green power.

This is one of several projects Growthpoint is undertaking that will make Sandton Central even more friendly for people, businesses and the environment.

Olympus Sandton’s striking and innovative design matches its prominent position on the Sandton skyline. It was created through collaboration between Australian architectural practice ClarkeHopkinsClarke (CHC) and one of South Africa’s foremost architectural studios, dhk Architects, and will be developed jointly by Growthpoint and Tricolt – all award-winning leaders in their fields.

Growthpoint’s development team has an established record of excellence in investment-grade commercial property development, which also extends to a signature range of residential developments. This includes its Riverwoods office-to-residential conversion to BlackBrick Bedford, various award-winning purpose-built student accommodation developments, and its recently completed major residential development, the fully sold-out The Kent, La Lucia, in KwaZulu-Natal.

The design of Olympus Sandton incorporates advanced sustainable building practices, including post-tension slabs and smart energy management systems, aligning with Growthpoint’s environmental, social and governance (ESG) commitments, including its 2050 carbon-neutral goal. The Olympus Sandton development will target at least a 4-Star Green Star rating from the Green Building Council of South Africa (GBCSA).

“Pedestrianised mixed-use precincts have tremendous environmental benefits, particularly when they are so well located, by reducing carbon emissions as a result of less private vehicle travel and traffic. Olympus Sandton is the next step in bringing our vision for Sandton Summit to life and delivers on our commitment to creating sustainable developments that deliver exceptional amenities for their uses and long-term value for our stakeholders,” says Schloss.

The best-known mixed-use asset in Growthpoint’s investment portfolio is the iconic V&A Waterfront, of which Growthpoint is a 50% owner. It also owns several other precincts and parks in its South African portfolio, such as the Longkloof precinct in Cape Town’s vibrant Kloof Street area of Gardens. Spanning 21,164sqm, this multi-use property has become a sought-after address for innovative, creative and entrepreneurial businesses, alongside the 154-room Canopy by Hilton hotel, the first in South Africa, which is set to open in late January 2025. In the vibrant Umhlanga Ridge New Town Centre, its three Green Star-rated office developments – Lincoln On The Lake, Mayfair On The Lake and The Boulevard – all offer a mix of P-grade office accommodation, ground floor retail and basement parking linked by a central landscaped courtyard with pedestrian access, and overlooking the gardens of a local park.

“Olympus Sandton exemplifies Growthpoint’s strategic approach to unlocking maximum value from prime real estate assets through thoughtful market-aligned development that improves our portfolio and progresses our sustainability goals,” notes Schloss.

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