Growthpoint unlocks R102m for local businesses and jobs

Growthpoint Properties is turning property development into a catalyst for economic participation, creating opportunities for small businesses and local workers across South Africa.

• R102.3 million in economic opportunities generated for local businesses and labour through Growthpoint’s development and refurbishment projects.
• 147 small businesses supported and 1,034 employment opportunities created across four provinces over the past four years.
• R82.47 million invested in Western Cape communities, supporting 98 local businesses and 766 workers across 12 projects.

Property investment that goes beyond buildings

Growthpoint Properties (JSE: GRT) is demonstrating how commercial property investment can deliver more than buildings and rental income, unlocking R102.3 million in economic opportunities for small businesses and local communities across South Africa.

Through its Local Economic Development (LED) programme, the JSE-listed property group has supported 147 small, medium and micro enterprises (SMMEs) and created employment for a cumulative 1,034 people across developments in Gauteng, the Western Cape, Eastern Cape and KwaZulu-Natal.

The results, measured to 30 June 2026, reflect four years of targeted efforts to ensure that communities surrounding Growthpoint’s properties benefit directly from development and refurbishment activity.

The Western Cape has been the largest beneficiary, accounting for R82.47 million in local procurement and labour expenditure, with 98 businesses and 766 workers participating across 12 projects.

“A property development should create value beyond the building itself,” says Engelbert Binedell, Chief Operating Officer at Growthpoint Properties.

“Where Growthpoint invests, we want local businesses and workers to have a genuine opportunity to participate in that economic activity, gain experience and build something that can last beyond a single project.”

From property development to economic opportunity

Growthpoint’s approach gained momentum following the July 2021 unrest, when relationships with local businesses and communities helped protect several of its properties from damage.

Subsequent engagements with community representatives in KwaZulu-Natal highlighted the need for a more structured approach to local economic participation.

In July 2022, Growthpoint formally introduced its LED Policy, establishing guidelines for local procurement, subcontracting and employment opportunities within its development projects. The policy was subsequently revised and approved by the company’s board in July 2025.

Rather than relying exclusively on established contractors and suppliers, the programme creates opportunities for local enterprises and workers to participate in construction, maintenance and refurbishment projects.

The objective is straightforward: ensure that investment flowing into commercial property also circulates through surrounding communities.

Building businesses, not just creating jobs

A central component of the initiative is developing the long-term capabilities of participating entrepreneurs.

Working with its implementation partner, Property Point, Growthpoint provides support in areas including construction contracts, compliance, costing, pricing and working-at-heights requirements.

These interventions help emerging contractors improve their competitiveness, strengthen their operational capabilities and build the experience required to secure future work.

“We have learned that meaningful participation is about more than opening the door to one contract,” says Desigan Chetty, Chief Operating Officer of Property Point.

“The bigger opportunity is when an entrepreneur leaves a project stronger than when they entered it – with experience, confidence, a track record and a better chance of winning their next piece of work. That is when local economic development starts creating lasting value.”

Growthpoint also tracks procurement expenditure, SMME participation, employment and project-level performance to measure outcomes and strengthen accountability.

A broader return on property investment

For South Africa’s commercial property sector, Growthpoint’s experience illustrates how development capital can deliver economic benefits beyond the physical asset.

By integrating local businesses and labour into its supply chains, property owners can help develop stronger enterprises, support employment and build more constructive relationships with surrounding communities. The R102.3 million generated to date provides a measurable example of that approach.

The bigger lesson is that successful property development should not only be measured by the value of what gets built, but also by the economic opportunities it creates for the people and communities around it.