Dubai World sells V&A Waterfront for R9.7bn

Dubai World sells V&A Waterfront for R9.7bn

The iconic Victoria and Alfred Waterfront in Cape Town has been acquired for R9.7 billion, marking South Africa’s biggest property sale to date.

Growthpoint Properties and Public Investment Corporation (PIC), representing the Government Employees Pension, will acquire the V&A Waterfront in equal proportions.

As many as 1.2 million public servants and 318,000 pensioners and beneficiaries could benefit from the transaction.

Located around the historic Victoria and Alfred Basins which formed Cape Town’s original harbour, the V&A Waterfront is a mixed-use property development and is the most visited tourist destination in Africa, attracting over 21 million visits annually.

Set against a backdrop of sea and mountain views, shopping and entertainment as well as arts and culture venues are intermingled with office locations, nine hotels and 518 luxury sectional title apartments in the residential marina.

“We are pleased that this South African landmark will once again rest in South African hands,” said Elias Masilela chief executive of the PIC.

“In addition to the benefits this asset will bring to many South African pensioners who now own 50 per cent of the viable and dynamically growing V&A Waterfront, it also represents an opportunity for growth which will come from the future development of the undeveloped bulk.”

The V&A Waterfront consists of 603,868sqm of bulk development rights approved by the Cape Town City Council of which approximately 64 per cent (383,833sqm) has been developed and approximately 36 per cent (220,035sqm) remains available for development.

Norbert Sasse, chief executive of Growthpoint Properties, explained the transaction has been driven by the existing performance, and future potential, of this prize property asset.

“More than being the premier property asset in Africa, the V&A Waterfront has all the performance fundamentals in place,” he said.

“V&A Waterfront enjoys robust demand across all sectors with lower vacancy rates than anywhere else in the country and benefits from significant net income growth.”