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Heartwood delivers growth and gears up for expansion
Top 3 Bullet Points
- Gross portfolio value up 6.4% to R401 million
- Vacancy rate below 1%, with 5.1-year average lease term
- New equity funding and land deals position Heartwood for scale
About Heartwood Properties
Heartwood Properties is a specialist commercial property development and investment company listed on the Cape Town Stock Exchange (CTSE). The company focuses on high-quality, environmentally conscious developments across the office, retail warehouse, and industrial warehouse sectors, primarily in the Western Cape.
Unlike traditional long-term holders, Heartwood follows a build – lease - exit strategy, enabling the recycling of capital into new projects. It also offers tenants the opportunity to become co-owners through a tenant shareholder model, aligning long-term interests and ensuring quality occupancy.
2025 Investment Snapshot
- Listing: Cape Town Stock Exchange (CTSE)
- Portfolio Value: R401 million (↑ 6.4% YoY)
- Net Asset Value: R150 million (↑ 6.4%)
- NAV per Share: R1.09 (↑ 6.9%)
- Loan-to-Value Ratio: 52% (↓ from 54%)
- Vacancy Rate: Less than 1%
- Average Lease Term: 5.14 years
- Lease Escalation: 6.7% average
“We’re very pleased with our results in a fairly tough market,” says John Whall, CEO of Heartwood Properties.
“The most important takeaway is that we’re now positioned for aggressive growth. We’ve refinanced on favourable terms and are in the final stages of securing substantial equity funding. This will allow us to unlock a strong pipeline of new developments and move with speed and confidence.”
Strategic Highlights and Way Forward
Heartwood’s standout move during FY2025 was securing its largest land deal to date, a strategically located, serviced industrial site at The Bridge, a mixed-use development near Stellenbosch. The site is earmarked for a major warehouse project, addressing Cape Town’s tightening supply of zoned industrial land.
Looking ahead, Heartwood plans to commence three new warehouse developments in the short term, including:
- Two projects of approximately R100 million each
- A third development valued at around R60 million
With rising demand for modern, well-located logistics and industrial space, Heartwood is well-positioned to deliver strong returns.
“We’re developers first,” adds Whall. “We build value through development, then realise that value through sale. With positive investor sentiment returning, now is the time to grow.”
Explore Investment Opportunities
Heartwood Properties’ 2025 audited financials and investor updates are available here: https://heartwoodproperties.co.za/investors
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