Big win for iconic South African development making over R30 million a day
The V&A Waterfront in Cape Town continues to perform strongly in South Africa, with the iconic development set for further expansion.
In its latest interim financial results for the six months ended 31 December 2025, Growthpoint Properties said that the like-for-like net property income (NPI) at the V&A increased by 8.7%.
Growthpoint, which owns the V&A alongside clients of the Public Investment Corporation, said that the NPI growth was due to increased tourism, which boosted retail, hotels and attractions.
Growthpoint’s 50% share of distributable income increased by 1.28% to R403.1 million (HY25: R398.0 million).
The REIT said that the distributable income increase takes into account the waterfront’s increased net finance costs on external borrowings in line with the V&A’s funding strategy as its development pipeline unfolds.
This includes the temporary closure of the Table Bay Hotel and Lux Mall for redevelopment.
The group said that the V&A Waterfront’s improved trading performance was driven by V&A-owned hotels and cost savings realised from the desalination plant.
Growthpoint’s results add to the good news from the V&A, with the development’s CEO, Graham Wood, recently stating that the development generated over R11 billion in retail sales in 2025, or approximately R30 million per day.
Wood said the numbers point to a resilient and growing neighbourhood.
“We welcomed 25 million visitors in 2025, matching the previous year despite significant development, construction and infrastructure upgrades across the precinct,” Wood said.
“Even without the completion of our luxury retail wing, the V&A achieved more than R11 billion in retail sales in 2025, up 7%, another year of excellent growth.”
The development is also undergoing a massive R20 billion expansion, which involves reclaiming approximately 3.2 hectares of land from the sea in Table Bay.
With the expansion, the precinct expects to see a massive influx of investment and construction activity over the next five years.
In the shorter term, the development has undergone several changes, including the opening of a purpose-built home for the Oranjezicht City Farm Market.
Marriott International also recently announced that it would bring its EDITION Hotels brand to Africa with The Cape Town EDITION.
The new hotel will be the first EDITION Hotel on the African continent. It will offer 142 guest rooms and suites, with a limited number of private residences also available.
Growthpoint’s financials
In its results, Growthpoint said that South African revenue increased by 2.2% to R4.2 billion, with the group seeing decreased vacancies in retail, office and industrial space.
The group also completed several major developments, including the Arterial Industrial Estate, Bayside Mall, Beacon Bay and the Hilton Canopy Hotel.
Office like-for-like NPI grew by 5.8% (HY25: 9.4%), Logistics & Industrial 5.6% (HY25: 3.5%) and Retail 6.3% (HY25: 6.1%).
Total like-for-like NPI growth across the three sectors was 6.0% (HY25: 6.8%), driven by gross property income growth of 4.8% and like-for-like property expenses increasing by only 2.0%.
Across its overall operations, the group said that distributable income increased by 2.1% to R2.6 billion (HY25: R2.5 billion).
The group said that distributable income benefited from lower finance expenses across the group, an overall improvement in contribution from the three South African sectors and reduced portfolio vacancies.
The group’s dividend per share also increased by 8.5% to 66.2 cents amid solid growth in South African sectors.
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