Growthpoint Properties reports solid H1’25 results
Estienne de Klerk, SA CEO of Growthpoint Properties joins CNBC Africa Godfrey Mutizwa for more.
Wed, 12 Mar 2025 16:03:35 GMT
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AI Generated Summary
- Growthpoint Properties reports robust growth in H1’25, driven by recovery from COVID-19 challenges and strategic initiatives.
- The V&A Waterfront demonstrates exceptional performance, with significant income growth and promising development projects underway.
- South African portfolio experiences strong growth, led by successful letting strategies, reduced vacancies, and positive revenue trends.
Growthpoint Properties, one of South Africa's leading real estate companies, has released its impressive half-year financial results for the year 2025. In a recent interview with CNBC Africa, Estienne de Klerk, the CEO of Growthpoint Properties, highlighted the key drivers behind the company's solid performance in the first half of the year. De Klerk attributed the success to a gradual recovery from the challenges posed by the COVID-19 pandemic, particularly in the real estate sector. With nearly 38% of its operations located offshore in Australia and Eastern Europe, Growthpoint Properties has navigated the impact of higher interest rates in these regions, leading to slightly reduced distributions. However, the South African portfolio experienced robust growth of 6.8%, fueled by successful letting strategies, decreased vacancies in office spaces, and overall cost optimization efforts. Notably, the V&A Waterfront, a tourism-focused asset, recorded a remarkable 16% growth in net property income. The V&A's performance played a crucial role in boosting the company's overall financial health. De Klerk emphasized the critical role played by the V&A Waterfront in the company's success, highlighting its strong income growth and strategic development plans. The V&A Waterfront has seen significant growth in tourism, with a 37% increase in hotel revenues and a 9% rise in tourists visiting the Cape Town Airport. Furthermore, Growthpoint Properties has invested in enhancing the operational exposure of its properties, leading to a more robust financial performance. South Africa's office, industrial, and retail portfolios, particularly in KwaZulu-Natal, have also shown remarkable growth, with decreasing vacancies and positive revenue trends. De Klerk expressed optimism in the company's future outlook, projecting a potential growth of between 1% and 3% by year-end. The company has exceeded expectations in the first half of the year, with a growth rate close to 4%. The V&A Waterfront remains a key focus for future development, with ongoing projects set to further enhance the asset's value. De Klerk elaborated on the ambitious plans for the V&A Waterfront, including the refurbishment of the Table Bay Hotel, expansion of the Luxe Mall, and construction of a luxury hotel on Quay 7. Additionally, a new residential apartment block is in the works, signaling a promising trajectory for the iconic waterfront property. Looking ahead, Growthpoint Properties aims to capitalize on the growth potential within the V&A Waterfront, with plans to expand towards the Granger Bay area and explore further development opportunities within the asset. The company's strategic initiatives and prudent financial management have positioned it for continued success in the real estate market.