Growthpoint showcases strategic growth in Cape Town

South Africa’s leading real estate investment trust (REIT), is strategically expanding its well-established portfolio of premier properties in Cape Town, with particular emphasis on the retail and logistics sectors. With this focused approach, Growthpoint is optimising its domestic portfolio through targeted investments, disposals, and active asset management. Its Western Cape portfolio represents 27% of Growthpoint’s South African assets by value and 11% by gross lettable area.

“Growthpoint’s strategy is centred on enhancing the quality of our portfolio to meet market demands while aligning with our sustainability goals,” explains Estienne de Klerk, SA CEO of Growthpoint Properties. “By investing in innovative developments across all three commercial property sectors, particularly in growth regions like the Western Cape, we are creating spaces that meet client needs and contribute to our long-term vision of carbon neutrality by 2050.”

Speaking to the local market’s strength, Wouter de Vos, Growthpoint’s Western Cape Regional Head, comments, “Cape Town offers exceptional market fundamentals across office, retail, logistics and industrial sectors. Our new developments and the value-adding enhancements to our properties in this region respond to strong demand. These projects show Growthpoint’s commitment to providing quality spaces that enhance client satisfaction.”

Among key property developments that highlight Growthpoint’s approach and exemplify its dedication to innovation, sustainability, and the delivery of high-performing assets tailored to the needs of the Cape Town market, are:

Longkloof: An innovative hub with historic charm

Situated in Cape Town’s vibrant Kloof Street area, the Longkloof precinct balances Cape Town’s unique heritage with modern sophistication. Spanning 21,164sqm, this multi-use property has become a sought-after address for innovative, creative and entrepreneurial businesses. Major office tenants include Travelstart, Mushroom Media and Workshop17, alongside the 154-room Canopy by Hilton Hotel set to open in late January 2025.

Originally a collection of historic buildings, Longkloof has been thoughtfully revitalised by Growthpoint to create a mixed-use destination that respects its past while embracing the future. The precinct’s aesthetic is characterised by distinctive red-brick facades and quirky industrial interiors. Anchoring its appeal is the new Canopy by Hilton Cape Town Longkloof Hotel. The first of its kind in Africa, this 154-room hotel incorporates the façade of the historic MLT House, blending heritage with cutting-edge design. Adjacent to the hotel, a public yard with curated retail and social spaces enhances the precinct’s connectivity and community focus.

With its location adjacent to a MyCiTi bus stop, a retail hub, and several dining options, Longkloof offers exceptional convenience. Its low vacancy rate, below 2%, reflects its desirability in Cape Town’s thriving real estate market. This flagship precinct exemplifies Growthpoint’s commitment to enhancing the city’s built environment​ through urban renewal with high-quality assets.

Longkloof is also the fifth Cape Town location of WorkAgility, Growthpoint’s pioneering agile office concept which is revolutionising the way businesses occupy office space. This innovative approach eliminates traditional office costs and complexity, offering flexible ready-to-occupy offices that can be secured for periods as short as a year. WorkAgility’s beautifully modern and fully equipped spaces, accommodating 20 to 65 workstations, include specialised areas like meeting rooms and concentration spaces. Importantly, the workspace is organisation-specific, there’s no shared or co-working space with other companies. With a one-click master service agreement, one all-inclusive monthly cost, and a dedicated community manager, WorkAgility streamlines the office experience. Powered by best-in-class expertise and leading proptech, WorkAgility creates inspiring environments that enhance business performance and foster an enjoyable work experience.

36 Hans Strijdom: A commitment to sustainability and to South Africa

Growthpoint’s 36 Hans Strijdom has been the home of the South African-born global investment manager Ninety One Limited for over two decades and will remain so following Ninety One’s recommitment to the building and to Cape Town’s CBD with its signing of a new 15-year lease for the entire building.

Located in Cape Town’s bustling Foreshore precinct, 36 Hans Strijdom is undergoing a R365 million green refurbishment that will see it upgraded to a state-of-the-art head office. This P-grade office building spans 12,800sqm and is expected to achieve a 5-Star Green Star SA certification upon completion. The entire project has been driven by the commitment of Growthpoint and Ninety One to leadership in sustainable and environmentally conscious development and is aligned with their combined drive to achieve carbon neutrality by 2050.

The redevelopment preserves the original building structure, reducing embodied carbon while introducing a host of modern, sustainable enhancements. These include a sleek new flush-glazed façade, energy-efficient displacement air-conditioning, high-performance glazing, and a rooftop solar plant. Further innovations include the replacement of escalators with a circulation staircase to optimise energy use, alongside upgraded amenities like a canteen, auditorium, and modern boardrooms.

A notable aspect of the project is the participation in Cape Town’s electricity wheeling pilot project. It is the first building in the CBD to receive clean, green energy wheeled through the city’s grid, underscoring Growthpoint’s commitment to pioneering sustainability initiatives.

Arterial Industrial Estate: proven demand in a prime location

Situated in the thriving industrial node of Blackheath, Cape Town, Arterial Industrial Estate is currently expanding to 41,444sqm across two phases comprising 12 A-grade units tailored to meet modern logistics and industrial needs.

Phase 1, completed in April 2024, is fully let. This strong market interest is evidence of the estate’s appeal, supported by its access to major routes like the R300, N1 and N2, and its proximity to Cape Town International Airport. These attributes make it a strategic choice for tenants looking to connect seamlessly with local and global markets.

Flexibility is an important feature of the estate. The unit design allows tenants to customise their spaces as needed, supported by Growthpoint’s ability to adapt its offerings to suit specialised tenant requirements. For example, Phase 1 accommodated bespoke solutions for leading tenants such as Jotun and RTT Group. This adaptability, combined with features like solar panels, water-saving systems and ASIB-compliant fire safety, ensures the estate remains at the forefront of sustainable, tenant-focused design and exemplifies Growthpoint’s commitment to delivering high-quality logistics and industrial spaces.

Bayside Mall: A reimagined shopping destination

The popular suburb of Table View in Cape Town is now home to a transformed Bayside Mall following the completion of its major R352 million redevelopment. This 39,122sqm small regional shopping centre, situated at the corner of Blaauwberg and West Coast Roads, has been revitalised to blend modern design with an enhanced retail mix, appealing to long-term patrons and new visitors alike.

The mall features 107 tenants, including major anchors such as Checkers, Shoprite, Dis-Chem and Ster-Kinekor, alongside popular brands like Home Tech and Value Co. The redevelopment introduced new retail options, a redesigned food court, and optimised layouts to improve accessibility and shopper flow. With an average annual turnover of R657 million and footfalls amounting to 4.6 million visits, the centre is well placed to meet the needs of its shopper market and its retailers.

Sustainability was a cornerstone of the upgrade. Energy-efficient lighting, expanded solar installations, and rainwater harvesting systems have all elevated the mall as an example of environmentally responsible retail. Enhanced vehicle access, on-grade parking, and dedicated taxi facilities have improved the mall’s accessibility and convenience, ensuring that it caters to its diverse customer base while meeting modern expectations.

Continuing to lead the way

As Growthpoint continues to invest in the Western Cape, the 50% co-owner of the V&A Waterfront’s premier property portfolio reflects its commitment to delivering exceptional real estate solutions.

“By aligning our investments with market needs and demonstrating our focus on sustainability, innovation, and quality, Growthpoint is reinforcing its commitment to long-term investment in Cape Town’s property market,” concludes De Vos.

South Africa's leading real estate investment trust (REIT), is strategically expanding its well-established portfolio of premier properties in Cape Town, with particular emphasis on the retail and logistics sectors.