Growthpoint Properties' partnership on a new R8 billion international gateway for Cape Town

<p>“It is not envisaged that Growthpoint will be investing in the airport terminal and runway at this stage, with our focus on the ancillary land uses. This partnership aligns with our strategy of investing in high-quality precincts and advancing our sustainability objectives,” Growthpoint's directors said in the update.</p>

<p>They said the Cape Winelands Airport project has reached several milestones in recent months. Final Environmental Authorisation has been obtained, and considering all appeals lodged, this represented the most significant hurdle for the project and followed a process of almost five years.</p>

<p>The City of Cape Town Municipal Planning Tribunal had approved the rezoning, consisting of approximately 350,000 square metres of total bulk, subject to an appeal process.</p>

<p>Cape Winelands Airport has also been formally awarded Strategic Integrated Project (SIP) status by Infrastructure South Africa.</p>

<p>This designation, under the Infrastructure Development Act, requires all organs of state to prioritise the airport's approvals, licences, authorisations, and exemptions. Cape Winelands Airport and all its associated infrastructure now carry statutory national strategic status.</p>

<p>On the broader outlook Growthpoint's directors said their operating environment has become more challenging across all geographies, with interest rates forecasting higher than initially anticipated, elevated inflationary pressures, and continued pressure on consumers affecting tenant affordability.</p>

<p>Commenting on its earlier earnings guidance to investors, the directors said that currently, the indicative outcome remains aligned to prior guidance, although the group has adopted a more conservative outlook beyond the guidance period.</p>

<p>“Operational performance has improved across all three domestic portfolios, supported by a combination of targeted strategic initiatives aimed at enhancing portfolio quality and key operating metrics,” they said.</p>

<p>“Notwithstanding ongoing <a href="https://iol.co.za/business/property/2026-06-22-south-africas-property-market-defies-high-interest-rates-as-homes-sell-faster/" target="_blank" rel="noopener noreferrer">interest rate</a> and exchange rate uncertainty, we expect distributable income per share (DIPS) for 2026 to grow by between 3% and 5% and dividend per share (DPS) growth of between 6% and 8%, based on a payout ratio of 87.5%. The full-year results to June 30 are expected to be released on September 9, 2026.</p>

<p>They said the<a href="https://iol.co.za/travel/2026-06-12-the-end-of-cape-towns-off-season-as-millions-of-tourists-embrace-its-grey-wet-winters/" target="_blank" rel="noopener noreferrer"> V&amp;A</a> continues to deliver strong performance and remains a reliable cash generator. GIP (Growthpoint Investec Property Fund) was performing in line with expectations, with the integration of Auria and execution of the development pipeline remaining key focus areas.</p>

<p>GOZ in Australia remained stable, although it continued to operate in a higher interest rate environment, with certain strategic initiatives still under review. “Our broader international investments are progressing in line with guidance,” the directors said.</p>

<p>Growthpoint’s share price slipped 0.74% to R17,42 on Wednesday morning after the release of the investor update, but this is more than 31% higher than what it traded at a year ago.</p>

<p><strong>BUSINESS REPORT</strong></p>

Guardian Sport · Jun 24

Guardian Sport · Jun 24

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