The prime property making its owners R260 million every month in South Africa
The V&A Waterfront in Cape Town is one of South Africa’s most valuable pieces of real estate, generating massive returns for its owners.
In the 2025 financial year, the 123-hectare mixed-use development reported revenue of R3.12 billion, which translates to an average of R260 million every month. Its net property income stood at R1.87 billion, or about R155.5 million each month.
Situated around the Victoria and Alfred basin, Cape Town’s original harbour, the V&A Waterfront includes retail, office, residential, fishing, logistics, industrial, and hotel properties.
It has become an international travel hotspot, drawing more than 24 million visitors annually, making it one of Africa’s most visited destinations.
This footfall is a cornerstone of its financial performance, with Growthpoint Properties CEO Estienne de Klerk calling it “the most wonderful South African story” and a benchmark for what the country can achieve under the right circumstances.
The ownership of the V&A is split evenly between Growthpoint, the largest real estate investment trust on the JSE with nearly 500 properties in its portfolio, and the Public Investment Corporation, which manages assets on behalf of the Government Employees Pension Fund.
Growthpoint’s results for the year ended 30 June 2025 provided the latest insights into the Waterfront’s performance, showing strong revenue growth but also the challenges of rising costs.
Revenue increased by 16.55% from the previous year, while net property income rose a modest 3.32%.
However, profit from continuing operations fell sharply by more than 25% to R3.06 billion, largely because property-related expenses surged by almost 44% to R1.25 billion.
Despite this, the operational performance was exceptional, with vacancies virtually non-existent at just 0.3%.
The V&A is now valued at R26.89 billion, or R106,444 per square metre, and boasts a gross lettable area of over 506,000 square metres.
Rental levels remain good, with gross monthly rentals averaging R978.20 per square metre. De Klerk highlighted that demand is especially strong for offices, with rentals exceeding R300 per square metre and in some cases reaching above R360.
Retail activity has also been a standout. “The retail centre generated close to R1.2 billion in December alone and more than R10 billion over the year,” said de Klerk.
More coming to the V&A Waterfront
He added that Growthpoint has been proactive in reinvesting in the development, with new projects underway.
This includes the refurbishment of the Table Bay Hotel, which will reopen as an InterContinental managed by Southern Sun, and the construction of a new five-star hotel, currently referred to as KE7, to be operated by a leading international brand.
The development is also benefiting from shifts in global shipping patterns. “We’ve had close to 183 vessels pass through, bringing with them around 170,000 tourists,” de Klerk explained.
“Those visitors shop, stay in Cape Town hotels, and inject significant spending into the local economy.” This international traffic complements its local appeal, as the Waterfront remains a hub where Capetonians shop, eat, work, and socialise.
De Klerk stressed that the Waterfront’s success is not confined to tourism. “It’s not just for tourists; it’s a place where Capetonians come to shop, be entertained, and connect. In the international context, it’s truly a remarkable destination.”
He added that the development delivered like-for-like net property income growth of 12.7% in the latest results, reinforcing its role as a key contributor to Growthpoint’s performance.
Looking ahead, de Klerk said the V&A Waterfront will continue to grow its offering. The opening of Lux Malls and the groundbreaking of a new residential development reflect confidence in Cape Town’s economy.
“Cape Town’s economy is steaming ahead, and the V&A shows what South Africa could look like if the right conditions and policies are in place,” he said.
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