Massive facelift for V&A

Cape Town's Victoria and Alfred Waterfront (V&A) is currently undergoing a R500-million revamp under its new South African owners, Growthpoint Properties and the Public Investment Corporation (PIC).

The V&A was bought by Growthpoint in March 2011 from Dubai World and London & Regional Properties for R9.7-billion, making it South Africa's biggest single property deal to date.

The deal to return the V&A to South African owners took almost two years to complete because it was subject to conditions such as exchange control approval.

The revamp will focus on the Clock Tower precinct, the Fruit Court and the construction of parking space around the Allan Gray head office.

Norbert Sasse, CEO of Growthpoint, said: "The significant value potential to be unlocked through the development of the approved bulk at the V&A Waterfront was always a key component to the transaction.

"More than being the premier property asset in Africa, the V&A Waterfront has all the performance fundamentals in place. It enjoys robust demand across all sectors, with lower vacancy rates than anywhere else in the country and benefits from significant net income growth."

The revamp will be the biggest business development at the V&A in over two decades.

PIC is involved in the deal as representatives of the Government Employees Pension Fund (GEPF). PIC manages R900-billion ($133-billion) worth of assets belonging to public workers.

Arthur Moloto, chairperson of the GEPF, said: "The V&A Waterfront acquisition has ensured that the ownership of one of the most prestigious properties in South Africa is again vested in the hands of South Africans and, specifically, the South African worker base in the form of 1.2-million public servants who are members of the GEPF."

The revamp comes at just the right time, coinciding with Cape Town being chosen as a top tourist and cultural destination.

Recent examples include the launch of the latest James Bond novel, Carte Blanche, which is set in the city. Several high-profile films have also been shot on location in Cape Town, including Denzel Washington’s Safe House.

In addition, Tripadvisor named Cape Town the number-one destination in the world in their 2011 Traveller’s Choice Awards.

Through the V&A deal, Growthpoint, the largest listed property company in South Africa, has raised its assets to R40-billion ($5.8-billion), while the GEPF’s investment in the Western Cape has risen from 12 percent to 30 percent, solidifying its presence in the retail sector.

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