LOOK: New R20 billion development set for V&A Waterfront
A more than R20 billion expansion at the V&A Waterfront’s Granger Bay is currently in the works.
Growthpoint Properties and the Public Investment Corporation (PIC) are planning a new R20 to R24 billion development at Cape Town's V&A Waterfront.
According to Moneyweb, this move will leverage the precinct’s strong financials to fund a major 15-year expansion into the Granger Bay area.
Described as "very ambitious” and "going to be absolutely amazing for Cape Town" by Growthpoint SA CEO Estienne de Klerk, the project will add 440,000 m².
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Plans include high-end hotels, residences, office space, retail, and entertainment, ultimately growing the Waterfront into a 1 million m² mixed-use hub.
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The V&A Waterfront, jointly owned by Growthpoint and the Government Employees Pension Fund (GEPF), remains South Africa's top tourist destination.
Moneyweb reports that the V&A Waterfront has a low debt load of about R2 billion and a loan-to-value (LTV) ratio of 6.97%. The expansion will rely on this financial stability.
"We do have quite a capex pipeline for that asset. So, developing our new hotels and there is new infrastructure we are looking at in the V&A… But the pipeline will, in the short to medium term, be funded by using their balance sheet," said De Klerk.
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He added: "We have been very successful in raising debt. The banks have been particularly keen to provide funding to the V&A, to their balance sheet."
"So, for the medium term, that is definitely going to be the area that we’ll be raising debt for all those capital requirements."
"The application is for roughly about 440,000 m² of bulk rights, mixed-use and predominantly towards the Granger Bay side. That process is currently being dealt with through the council (City of Cape Town). It needs to go through about 16 different departments, and each of those departments is assessing it."
"There has been positive feedback," De Klerk said, with a clearer update expected within a month.
However, negative departmental feedback could delay things by two to three months if it requires review by a municipal tribunal or mayoral council.
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