Growthpoint’s R59bn Property Shift: Why Cape Town is winning

• Growthpoint is recycling capital out of non-core assets and backing stronger-performing Western Cape property nodes.
• Western Cape offices, retail and logistics are outperforming key Gauteng indicators in Growthpoint’s latest update.
• Major Cape investments include the V&A Waterfront, Cape Winelands Airport, Foreshore offices and logistics developments.

Increased capital shifts to Western Cape

‍South Africa’s biggest listed property company is not abandoning Gauteng, but its latest investor update makes one thing clear: Growthpoint is increasingly allocating capital where performance, infrastructure and long-term growth prospects are strongest and the Western Cape is emerging as a major beneficiary.

The R59bn listed REIT’s latest update for the nine months to 31 March 2026 shows a deliberate portfolio reset. Growthpoint has been selling non-core and weaker assets, reducing exposure to older office stock, and recycling capital into higher-quality assets, logistics, dominant retail centres and precinct-led developments.

The numbers tell the story. Growthpoint projects total disposals of R5.1bn for FY26, well ahead of its original R3.5bn disposal target. During the period, it sold and transferred 21 assets for R2bn, with a further eight properties valued at R2.9bn transferred after 1 April 2026.

The Western Cape stands out across several key indicators. In office, Growthpoint’s Western Cape vacancy rate improved sharply from 5.4% to 3.0%, while Gauteng office vacancies increased from 18.5% to 18.9%. In logistics and industrial, Western Cape vacancies fell from 3.4% to just 0.2%, while Cape Town delivered rental growth of 7.1%.

Retail is also showing strength. Growthpoint reports that the Western Cape delivered the highest retail trading density growth at 4.3% year-on-year and the highest annual trading density at R47,769/m². Its Western Cape retail renewal success rate also improved to 94.6%.

This is not a sentimental shift. It is a capital allocation decision. Growthpoint is putting money behind assets and regions with stronger tenant demand, better infrastructure, resilient consumers and long-term development potential.

Major Cape-linked projects include the R110.3m redevelopment of 36 Hans Strijdom Avenue in Cape Town, R82.1m at Longbeach Mall in Noordhoek, the Paarl Mall expansion, and the newly acquired Indlovu Logistics Park in Montague Gardens.

The clearest signal is Growthpoint’s strategic partnership with Cape Winelands Airport, where it will co-develop and manage a 450-hectare mixed-use aviation precinct. Phase 1 is estimated at approximately R8bn, with construction expected to start later in 2026, subject to approvals.

The V&A Waterfront remains another major growth engine. Growthpoint expects significant growth from the precinct over the next three to five years, supported by a strong development pipeline. Its retail sales rose 5.1% year-on-year, office vacancies sit at only 0.5%, and major developments including Granger Bay, Quay 7 Edition Hotel and build-to-rent apartments are progressing.

The broader message for investors is clear: South Africa’s commercial property market is becoming more selective. Capital is moving away from weaker nodes and older assets toward precincts with infrastructure, logistics demand, mixed-use potential and resilient occupier markets.

Growthpoint’s update does not say Gauteng is finished. It says the next phase of institutional property investment will reward quality, location, infrastructure and active asset management and right now, the Western Cape is making one of the strongest cases in the country.

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