<\/p>\n
JSE-listed real estate giant Growthpoint Properties says it is confident about securing environmental approvals for the massive R24 billion Granger Bay expansion at the V&A Waterfront in Cape Town by 2027.<\/p>\n
The development, which includes land reclamation into the sea to form a more protected \u2018bay\u2019 that will enhance public access to the area, is set to be rolled out in phases over 10\/15 years and will unlock mixed-use buildings including hotels, apartments, destination retail, leisure and event spaces.<\/p>\n
Read:
South Africa \u2018stands out\u2019 for Growthpoint Properties
Cape Town\u2019s new R20bn+ Granger Bay jewel
R20bn+ V&A Granger Bay expansion begins with basement build, prep work<\/p>\n
As Moneyweb reported in February, while Granger Bay itself and the reclamation for part of the development is expected to take three years, most of the \u2018bulk\u2019 for new development is on existing land adjacent to the area where the Table Bay Hotel and Cape Wheel are located.<\/p>\n
Growthpoint jointly owns the V&A Waterfront on a 50\/50 basis with the Government Employees Pension Fund (via the Public Investment Corporation).<\/p>\n
The group says the bay development will largely be funded off the V&A\u2019s balance sheet, which currently has relatively low debt or gearing.<\/p>\n
\u201cWe are very optimistic about getting the relevant environmental approvals,\u201d said Growthpoint Properties SA CEO Estienne de Klerk during an interim results media briefing on Wednesday.<\/p>\n
He said while the new Granger Bay plan is bigger in scale, it also offers better coastal protection in the form of a fully-fledged bay with \u2018two arms\u2019 or breakwaters.<\/p>\n
\u201cIn fact, our previous development plan which had just a single arm for the bay, was given approvals. That was a different version that got approved and the approvals expired due to the fact that we came up with a new plan based on better coastal protection and to make that area of the V&A Waterfront more accessible to public,\u201d he said.<\/p>\n
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De Klerk added that the process to secure environmental approvals is currently underway through government\u2019s environmental affairs portfolio (under the Department of Forestry, Fisheries and the Environment).<\/p>\n
\u201cIt effectively needs to go through parliament [for final approvals] and we anticipate getting approval sometime next year,\u201d he said.<\/p>\n
Listen\/read:
Upper echelons: Estienne de Klerk talks hot property and leadership
Estienne de Klerk succeeds Sasse as Growthpoint group CEO
The man with Cape Town\u2019s dream job
David Green gearing up V&A Waterfront for 36m visitors
Cape Town\u2019s V&A Waterfront plans \u2018jewel in the crown\u2019 development in post-Covid future [Sept 2021]<\/p>\n
De Klerk said the V&A Waterfront Company recently received planning approvals for 440 000m2\u00a0of additional bulk rights from the City of Cape Town for the development. This is largely linked to existing land, and not the part to be reclaimed from the sea for Granger Bay itself.<\/p>\n
He stressed that the V&A Waterfront is an iconic tourism and property asset not just for Cape Town, but for South Africa, and puts the country on the global tourism map.<\/p>\n
\u201cThe Granger Bay expansion has support from different levels of government \u2026 It is a key development for Cape Town and the country. It is in the interests of the country for this project to get the relevant approvals.\u201d<\/p>\n
Outgoing group CEO of Growthpoint Properties, Norbert Sasse, said the overall Granger Bay development could total R24 billion.<\/p>\n
However, he explained that the capital outlay would not be upfront but over a number of years as the massive project is rolled out in phases.<\/p>\n
Sasse said while the V&A Waterfront Company would leverage off its balance sheet to undertake the development, a \u201cfair bit of residential\u201d projects with apartments for sale will fund the Granger Bay expansion over time.<\/p>\n
This includes later-living and life-rights options for new residential developments planned around the Granger Bay area of the Waterfront.<\/p>\n
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The V&A Waterfront and the area where the Granger Bay Precinct will be ‘unlocked’. Image: Growthpoint presentation<\/p>\n
Another view of the Granger Bay model. Image: Boyd & Ogier website<\/p>\n
Image: Boyd & Ogier website<\/p>\n
Image: Growthpoint presentation<\/p>\n
Part of the area at the V&A Waterfront around Granger Bay is being earmarked for longer-term investment. Image: Supplied<\/p>\n
A schematic of the envisaged Granger Bay precinct. Image: V&A Waterfront\/Growthpoint presentation<\/p>\n
A model created in 2023 by Boyd & Ogier of the proposed Granger Bay development at the V&A Waterfront. Image: Boyd & Ogier website<\/p>\n
Source: V&A Waterfront<\/p>\n
The Granger Bay expansion plan approved in 2018. Source: V&A Waterfront<\/p>\n
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The new plan that is awaiting environmental approval. Source: V&A Waterfront<\/p>\n
Read\/listen:
Auria Senior Living snapped up for R2.4bn by Growthpoint Healthcare
Growthpoint\u2019s George Muchanya talks healthcare, student accommodation fund listing plans
Exclusive: The V&A Waterfront\u2019s bold plan for Granger Bay
Growthpoint and PIC to pump billions into V&A Waterfront
Sasse on leading Growthpoint from a R118m to R175bn company [March 2023]<\/p>\n
A slide presentation from 2024 of the broader development that Moneyweb has had sight of, showed that the V&A Waterfront Company had a low gearing or loan-to-value ratio of around 7% or just over R2 billion in debt.<\/p>\n
While this may have increased \u2013 with several other major developments totalling \u201cR3 billion to R4 billion\u201d underway, such as the overhaul of the Table Bay Hotel, luxury mall extension, and development of the new Marriott Edition Hotel \u2013 the V&A\u2019s gearing level is still likely low compared to JSE-listed real estate investment trusts like Growthpoint (group-wide).<\/p>\n
The industry norm is for a gearing level of between 35% and 40% for listed property counters.<\/p>\n
Listen to Sasse speaking about Growthpoint\u2019s latest results on SAfm Market Update with Jimmy Moyaha:\u00a0<\/p>\n<\/p>\n
You can also listen to this podcast on iono.fm\u00a0here.<\/p>\n
#Growthpoint #expects #environmental #approvals #R24bn #Granger #Bay #expansion #year<\/p>\n","protected":false},"excerpt":{"rendered":"
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