The V&A Waterfront makes R630.87 million a month

The V&A Waterfront achieved a weighted average monthly gross rental of R499.07 per m² in the 2026 financial year.

This means the crown-jewel precinct, which spans 1,264,084 m², makes R630.87 million a month.

This was revealed in Growthpoint’s results for the financial year ended 30 June 2026, released on Wednesday, 9 September.

Growthpoint is the largest primary real estate investment trust (REIT) listed on the JSE, with a market capitalisation of R56.44 billion and property assets of R157.5 billion.

The REIT has a portfolio spanning office, logistics, industrial, and retail properties, including well-known assets such as La Lucia Mall, Brooklyn Mall, Paarl Mall, and Fourways Crossing.

The crown jewel precinct in Growthpoint’s portfolio is the Victoria & Alfred Waterfront in Cape Town. 

The REIT holds a 50% joint venture interest in the precinct alongside the Public Investment Corporation.

Growthpoint’s 2026 results revealed that the precinct has performed well over the year, with its fair value up 13.72% from 2025 to R27.41 billion.

The carrying value of Growthpoint’s 50% stake rose to R9.47 billion, an increase of 15.21% compared to 2025.

The V&A Waterfront’s operational performance was also strong, with vacancies across the 123-hectare mixed-use precinct standing at a record low of 1%.

The precinct achieved a weighted average monthly gross rental of R499.07 per m² and a forward yield of 6.8%.

Revenue surged by 39.9% to R4.35 billion, compared to R3.12 billion in the 2025 financial year.

For this strong performance, Growthpoint received R965 million in dividends and interest distributions from the V&A Waterfront.

Growthpoint plans to keep investing in the V&A Waterfront’s growth, with R1.29 billion in capital committed: R504 million is planned for the next 12 months, and a further R787 million is expected thereafter. 

These investments will go towards new projects that are set to expand the precinct’s hotel space, upgrade its infrastructure, and add a new luxury wing to Victoria Wharf.

At a group level, Growthpoint had a solid financial year, with distributable income per share up 4.3% to 152.6 cents.

The group’s loan-to-value (LTV) ratio reduced to 38.7%, down from 40.1% in 2025, driven by a significant LTV decrease in its South African operations.

Across the group’s South African portfolio, vacancies dropped from 8.1% in 2025 to 7.3% in the 2026 financial year.

The value of Growthpoint’s property assets rose by 2.8% to R160.1 billion. The group’s net asset value increased by 3.8% to 2,131 cents per share.