SAREIT

Emira Property Fund (JSE: EMI) is over the halfway mark in selling the 282 apartments in its ground-breaking office-to-residential conversion, The Bolton in Rosebank, Johannesburg, as it continues its ongoing programme of strategic capital rotation.

Emira’s investment strategy for The Bolton has created excellent value for its stakeholders. The REIT invested R125m in the conversion of the former office building worth some R80m at the time. It has earned an average of R17m of income every year from the property since the redevelopment began to be tenanted in late 2018. Now, on exit on a sectional title basis, the total sales price for the 282 units is expected to be close to R327m.

“At Emira, asset recycling is always an option we consider when making investments. Emira has completed a full cycle with The Bolton, transforming offices into residential units and fully leasing them, and now reaching the stage where we felt the best use of this capital was to sell off on an individual sectional title basis and reallocate the proceeds to other strategic investments,” explains Emira Property Fund CEO, Geoff Jennett.

Unit sales are progressing well. Emira’s appointed specialist partner IGrow began selling in October 2022 and around 149 units had transferred by the end of August 2023. Another 69 units are under agreement. At this pace, Emira could be completely sold out of The Bolton in the next 12 to 18 months.

Sales are supported by the strong rental market in Rosebank for these apartments – on an individual, sectionalised basis – allowing Emira to realise its economic ambitions by selling the units individually and using the capital in other ways. One of these ways it is using the proceeds is to acquire the minority interest in Transcend Residential Property Fund that Emira doesn’t already own, as signalled in its recent Scheme of Arrangement announcement. Emira is also parking the proceeds in its revolving debt facilities, ready for future endeavours that it finds attractive.

Emira recently gained control of Transcend, which means residential assets now comprise around 15% of its total assets, which is on the higher end of its preferred allocation of 10% to 15%. Unit sales at The Bolton, which focused on a separate market to the Transcend portfolio, provide an ideal opportunity to lighten Emira’s exposure to this sector.

Emira’s diversified portfolio is balanced to deliver stability and sustainability through different cycles with a mix of assets across sectors and geographies, and through direct property holdings and indirect property investments with specialist third-party co-investors. Approximately 18% of Emira’s asset base is made up of equity investments in grocery-anchored open-air convenience shopping centres in the USA.

Based on the success of its value-adding investment in The Bolton, Emira would consider similar projects in the future, where both the returns and risk levels are appropriate. This joint venture with a residential specialist, the Feenstra Group, has fulfilled expectations.

“We are in favour of initiatives like this, which was a pilot project for us, and have gained in many ways from this experience, which we will put to good use in the future. This is a good example of Emira identifying and working the opportunity, from the office-to-residential conversion to sectionalising and selling, so that capital can be redeployed to create value strategically again and again,” concludes Jennett.

Growthpoint Properties Limited (JSE: GRT) delivered a 1.3% increase in both dividend per share (DPS) and distributable income per share (DIPS) to 130.1 cents and 157.6 cents respectively for the 30 June 2023 financial year. Group property assets grew 5.3% to R179.8bn and foreign currency dividend income increased 7.6% to R1.6bn.

Norbert Sasse, Group CEO of Growthpoint Properties, comments, “Growthpoint did well to deliver a stable performance in line with expectations. We successfully achieved our planned outcomes in a year that was tougher than ever, reflecting the strength and diversification of our business and our quality earnings.”

Sasse notes that excellent results from the V&A Waterfront made the greatest increase in contribution to this solid set of results. In contrast, rising finance costs, particularly impacting Growthpoint’s South Africa and Australian businesses, presented the most significant downside.

Growthpoint creates space to thrive with innovative and sustainable property solutions in environmentally friendly buildings while improving the social and material well-being of individuals and communities. It is an international property company invested in real estate in South Africa, across Africa, Australia, Poland, Romania and the United Kingdom, and the largest South African, JSE primary listed REIT. Growthpoint is a FTSE/JSE Top 40 Index company, a constituent of the FTSE EPRA/NAREIT Emerging Index, and has a long-standing inclusion in the FTSE4Good Emerging Index and the FTSE/JSE Responsible Index. This year, it became a participant in the United Nations Global Compact.

Growthpoint remains focused on a strong balance sheet and the consistent application of conservative financial management in adherence with rigid treasury policies and balance sheet metrics. Its balance sheet strength and liquidity enable it to pursue its three key goals: international expansion, optimising its South African portfolio and increasing revenue from Growthpoint Investment Partners’ managed assets.

In line with its steady performance, Growthpoint kept its dividend payout ratio at 82.5%, consistent with its last financial year. It retained R938.5m before tax to fund capital expenditure and developments together with the proceeds from property disposals.

Its conservative group SA REIT loan to value (LTV) ratio was 40.1% with a solid interest cover ratio (ICR) of 2.9 times. Growthpoint refinanced its USD425m Eurobond which matured in May 2023 with longer tenure EUR debt facilities in a challenging market, extending the average term of its debt book to 3.5 years. It also secured long-dated bonds through private placements with the International Finance Corporation (IFC) and other debt investors at attractive margins. Growthpoint has good liquidity with R1.7bn cash on its SA balance sheet and R6.6bn in SA unutilised committed debt facilities. In a rising interest rate environment, 77.7% of its debt book is hedged. Domestic finance costs, including finance costs and income received on interest rate swaps, increased by R215.0m for FY23.

Growthpoint continued the incremental growth of its strategic international investments with 45.8% of property assets by book value located offshore and 29.1% of DIPS earned offshore for FY23. It owns 58 office and industrial properties in Australia valued at R61.8bn through a 63.7% shareholding in GOZ and five community shopping centres in the UK valued at R8.5bn through a 62.4% investment in LSE- and JSE-listed Capital & Regional (C&R). Through its 29.5% investment in LSE AIM-listed Globalworth Real Estate Investments (GWI), Growthpoint owns an interest in 72 office and industrial properties valued at R59.1bn in Romania and Poland. Its effective share is R17.4bn. It reinvested the December 2022 dividends paid by C&R and GWI, and the June 2023 dividends declared will be reinvested post-period.

Strong performance from GOZ delivered a 2.9% increase in AUD distribution growth to AUD21.4cps supported by once-off income from the early termination of two leases, which was offset by withholding tax increasing from 9.9% to 12.8%. GOZ’s AUD funds from operations (FFO) decreased by 3.2% mainly as a result of higher finance costs. GOZ has a gearing of 37.2% and AUD300.0m of undrawn debt, 70.5% of its debt fixed and its debt book has an average term of 3.4 years.

All GOZ’s portfolio metrics are robust: it is 96.6% occupied by gross lettable area (GLA), with 95% of the portfolio leased to the government, listed and large organisations. While the impact of working trends on the office sector is less pronounced in Australia than in South Africa and Eastern Europe, the sector is underperforming. GOZ has  65% of its portfolio by value exposed to the office market. Australia’s illiquid direct property market limited the growth of GOZ’s Fortius Fund Management, which has AUD1.8bn of third-party funds under management.

“GOZ’s strong capital structure, prudent gearing, high-quality office tenant base and strong industrial property market position it solidly in a higher interest rate environment,” says Sasse. Due to the impact of high interest rates for a full year, GOZ has guided a 9.8% reduction in distribution per share to AUD19.3c and FFO per share of between AUD22.5c to AUD 23.1c in FY24.

GWI yielded a resilient performance with a 7.4% increase in dividend per share. Increased inflation underpinned rental increases. With global challenges impacting office markets in particular, signs of pressure were evident in vacancy rates and leasing incentives, and portfolio valuations decreased by 2.5% with Bucharest and Warsaw performing better than the regional cities in Poland. GWI has gearing of 42.7% with no material debt maturity until March 2025. Most of GWI’s funding is fixed and in the debt capital markets, limiting interest rate exposure.

GWI achieved good letting however vacancies increased to 14.5%. It continued its development focus on logistics facilities in Romania, delivering 60,800 sqm of logistics and light industrial facilities, and has two small-unit logistics facilities under construction of 13,300 sqm. In Poland, it is refurbishing two mixed-use properties of 74,900 sqm.

“GWI is showing stability and has a prudent financial position, although challenging market conditions mean a more uncertain outlook and slower growth expectations. We continue to evaluate options to maximise the value of this investment,” notes Sasse.

C&R had a good year operationally with robust metrics driven by its community-focused needs-based retail strategy. It significantly increased its dividend from GBP2.75 pence per share (pps) to GBP5.5pps totalling R103.6m for Growthpoint. After significant write-downs to valuations in recent years, valuations have stabilised and improved by 2.1% in the last six months to FY23. Its LTV ratio increased to 42.0%. C&R’s exposure to interest rates is limited with 98% of its debt fixed.

It invested GBP12.9m in value-adding projects that will produce a yield on cost of between 8% and 9%. Post-period it completed the GBP40m acquisition of The Gyle Shopping Centre in Edinburgh in an earnings-enhancing transaction, even though the equity raised to fund the transaction was at a discount to NAV.

“C&R is showing pleasing balance sheet stability and operational resilience,” Sasse says.

Good letting of a substantial 1.2m square metres in Growthpoint’s SA portfolio reduced vacancies overall to 9.4%. Its SA property values increased 1.2% to R70.5bn, signifying greater stability and a more positive market view on future rental growth rates. Renewal rental growth rates remained negative at -12.9% versus -12.8% for FY22. Credit metrics improved and arrears reduced to R165.4m from R195.3m at FY22.

Growthpoint owns and manages a diversified core portfolio of 362 retail, office, and industrial properties across SA. It manages these assets to optimise their value over the long term but also seeks to sell non-core assets and recycle capital to rebalance its portfolio towards higher growth sectors and regions, specifically industrial assets and the Western Cape (WC) region. It sold 29 non-strategic properties for R1.5bn during the year, making a profit on book value of R107.8m. Growthpoint has sold 142 properties for R11.2bn in SA since 1 July 2016.

Growthpoint’s total expense ratio for its SA business increased from 33.5% to 35.5%, with continued above-inflation hikes in municipal rates and taxes, plus rising utilities costs and diesel for backup electricity for its tenants as a result of the extensive load-shedding. Its diesel spend was R140.0m versus R15.4m in FY22, of which 41.7% of this was recovered.

Growthpoint’s strongest and most active sector was its industrial property portfolio. All its industrial property metrics were positive, except for renewal growth as longer leases continued to revert to market. Improved letting saw vacancies reduce significantly from 5.7% to 3.7%, and in WC and KwaZulu-Natal (KZN) vacancies were a low 3.3% and 0.8% respectively. Positive key metrics drove up the industrial portfolio value by 3.0%. Taking advantage of the demand to own industrial properties, Growthpoint sold 20 non-core smaller assets to owner-occupiers and private investors. It acquired one fully let property in Hammarsdale, KZN, and commenced four industrial developments in the WC, Gauteng and KZN.

The 2.3% increase in retail property portfolio valuations shows improved trading conditions for most of the year driving improved metrics. The retail property portfolio reflected a steady low core vacancy of 3.1%. Trading density growth, which was stronger in the first half of FY23 at 8.6% slowed to 6.2% in the second half as a result of load-shedding disrupting trading, interest rate increases and the weaker economy putting pressure on consumer spending. While leases continued to revert negatively and rental escalations on renewal remained under pressure, this began improving towards year-end. Upgrades and expansions are underway at Bayside Mall, Beacon Bay Retail Park, River Square and Vaal Mall.

The office property portfolio vacancies reduced to 19.2% after peaking at 22.4% in March 2022. In KZN vacancies were 1.7% (FY22: 7.7%) and 7.7% (FY22: 13.6%) in the WC showing the return of positive property fundamentals in these regions. In Gauteng, vacancies in Illovo halved from 45% to 22% and should reduce below 10% in FY24. Letting continues in Sandton, where many large users are back at the office more frequently leading to increased occupancies, but businesses are still consolidating and reducing space. The node represents 21.9% of the Growthpoint’s office GLA and is 28.7% vacant. Higher occupancy and improved metrics saw office valuations increase by 3.2% in both WC and KZN, but decrease by 2.7% in Gauteng, taking the total valuation to -0.9%. Adding more amenities to its offices, it completed the refurbishment of The Place at 1 Sandton Drive. Meeting the demand for hotels in WC at its Longkloof precinct, Growthpoint is developing the 150-room Hilton Canopy Hotel set for completion in October 2024.

Growthpoint’s in-house trading and development division develops assets for its own balance sheet and generates development fees from third-party developments as well as trading profits. The contribution to distributable income from trading and development was R80.0m for the period.

Growthpoint invested R1.9bn of development and capital expenditure in FY23, with commitments of R1.8bn for FY24.

Growthpoint aims for excellent environmental, social and governance (ESG) performance. This year, it furthered its solar energy strategy to help its tenants avoid the impacts of load-shedding and to pursue its environmental commitments and carbon-neutral 2050 target. Over the approximately 15 years since load-shedding began in SA, Growthpoint has evolved and improved its response, first with generators, then focusing on solar power and now an optimal mix of clean energy and backup sources.

Growthpoint more than doubled its installed renewable energy generation to 27.32MWp during the year with a total investment of R395m in solar plants since FY21. It has targeted 40MWp of solar power generation capacity by the end of FY24. Growthpoint’s energy management ensures that its properties are well backed up to sustain tenant businesses.

“Our SA business is soundly positioned with a strong balance sheet and liquidity. Encouraging improvements are being led by the industrial and retail portfolios and our offices in WC and KZN. Our focus remains on optimising our SA portfolio, including lowering our exposure to offices and non-performing nodes in Gauteng while reducing reliance on the national electricity grid and fossil fuels,” says Sasse.

The iconic V&A Waterfront, Cape Town, in which Growthpoint has a 50% interest with its share of property assets valued at R10.1bn, delivered outstanding performance driven by the return of tourism and events to its market. This boosted net property income 20% higher than FY22 and 11.2% above FY19, while footfalls increased 28% recovering to 90% of FY19 numbers. The strategy of guaranteeing that all retail, restaurants and hotels were able to trade normally through the 325 days of load-shedding has paid off, delivering a significantly improved performance, albeit at an R36m diesel cost. Vacancies across the precinct were a low 0.4%.

Retail sales increased by 39% and trading densities increased by 48%, with retail vacancies a mere 0.2%. Alfred Mall reopened in December 2022 and is trading well. Hotels at the V&A had an exceptional year, with net property income increasing by 39%. Occupancy levels grew by 56%, the average daily rate by 42% and room revenue climbed 122%. Residential-to-let vacancies improved from 17.8% at FY22 to 2.3%.

Demand for V&A offices is strong, with vacancies at 0.2%. The new 10,500 sqm office for Investec is on schedule for completion in November 2023, and a 6,600 sqm office conversion in the cruise terminal is underway for completion in FY24. In the marine and industrial sector, moorings performed excellently, up 9%, and the cruise season saw 185,000 passengers and crew welcomed at Cape Town Cruise Terminal.

“Having virtually no vacancies and strong demand across the board bodes well for future rental growth at the V&A, which expects high single-digit income growth for the year ahead,” says Sasse.

Growthpoint Investment Partners increased its asset management fees by 44% to R98m. It ended the year with R17.9bn of assets under management (AUM) and attracted capital from top-quality co-investors as it grew towards its goal of R30bn AUM by the end of FY27. Growthpoint’s capital-efficient alternative real estate co-investment platform includes three funds that are distinct from Growthpoint’s retail, office and industrial core assets. They are well-suited for social impact investment in alternative real estate sectors that inherently contribute to societal good.

Growthpoint Healthcare Property Holdings (GHPH) delivered DPS growth of 8.2% and attracted an R500m investment from the Namibian Government Institutions Pension Fund (GIPF Namibia) in November 2022 reducing Growthpoint’s shareholding to 39.1% and dividend income to R121m (FY22: R143m). It also sold 15% of its management company to Kagiso in February 2023. GHPH has a property portfolio valued at R3.7bn and has raised R2.8bn of capital since inception. It acquired its first logistics asset in the period and had R340m of debt funding available from the IFC for two healthcare development projects in KwaZulu-Natal, and the R106.4m acquisition of the Johannesburg Eye Hospital in Northcliff recently approved by the Competition Commission.

Growthpoint Student Accommodation Holdings (GSAH), in which Growthpoint has a 14.3% holding, declared a dividend of 92.52cps for FY23 with dividend income for Growthpoint of R22m (FY22: R17m) for its first full year of operation. GSAH increased its portfolio value to R2.7bn, attracted an R250m investment from GIPF Namibia and has received capital commitments of R330m as part of its current capital raise. It has raised R1.7bn since inception. With strong demand, it will increase beds to 8,800 for the 2024 academic year and has acquired three development sites for the 2025 and 2026 academic years, two near Wits University and one at the University of KZN. A vendor rental guarantee shielded the portfolio against the negative impact of NSFAS unilaterally capping the student accommodation allowance to R45,000 a year in 2023, which negatively impacted the Pretoria portfolio. It is engaging various stakeholders for solutions to this matter and reconfiguring properties where appropriate.

Lango Real Estate successfully raised USD m including an investment from Growthpoint of USD m (R513.8m) and has secured additional commitments of USD m. With these funds, it intends to reduce debt and potentially acquire assets which will aid Lango’s diversification strategy. Growthpoint holds an 18.4% shareholding in Lango, which has an AUM of USD611.2m comprising prime office and retail assets in Ghana, Nigeria and Zambia, and land in Angola. Lango’s contribution to Growthpoint decreased because of structural challenges that included higher interest costs, the inability to convert Naira into USD to externalise from Nigeria, and Mauritian regulations regarding retained earnings.

“Growthpoint Investment Partners is attracting good investment appetite from institutional investors, has a solid pipeline of opportunities to increase AUM for existing funds and launch a new fund by FY25,” says Sasse.

Growthpoint’s diversified portfolio across international geographies, sectors and income streams, together with its conservative financial management, sound balance sheet and steady income from foreign currency dividends position it defensively for FY24.

“Growthpoint is a strong, diversified business with talented employees, a solid financial foundation and clear strategic thrusts dedicated to delivering value for all stakeholders,” says Sasse.

Given the impact of high interest rates across both our local and international businesses for a full year, Growthpoint expects DIPS to decline by 10% to 15% for FY24. Growthpoint endeavours to maintain a payout ratio of 82.5%.

The Board of Directors of Growthpoint Properties is pleased to advise that Norbert Sasse has agreed that he will continue in his capacity as Group CEO until 31 December 2026, thereby providing continuity in progressing the company’s various strategic initiatives.

South African retail group, Retailability has described the reconstruction of its 13 000m² apparel distribution centre at the Cornubia Ridge Logistics Park north of Durban as a “massive collaboration” and a “good news story” for the regional economy.

The retail brand which includes Edgars, Legit, Swagga Style and Keedo was just one of the hundreds of businesses that suffered considerable losses during the July 2021 violent unrest in the country.

It is estimated at least R50 billion was wiped from the economy, two million people lost their jobs and 350 people were killed during the rioting and looting which lasted more than a week mainly in the provinces of KwaZulu-Natal.

Steve Pearson, Retailability’ s Head of Supply Chain, said the opening of the re-constructed distribution centre this month was not only ahead of schedule but was key to allow the business to prepare for peak season trading.

“In May 2021 we moved into our newly built distribution centre at the Cornubia Ridge Logistics Park. On July 12, 2021, the DC was compromised due to the fires that took place in the area, resulting in another unforeseen relocation outside of the Cornubia area. And now, almost two years later, we are back and geared for growth. That speaks to our resilience and extraordinary teamwork by our landlord and the stakeholders,” he said.

Pearson likened business operations since the disaster to “open heart surgery while keeping the blood supply flowing”. “In a situation such as this there are two choices: you either roll over and give up, or you get up, dust yourself off and put your shoulder to the wheel. We managed to supply our 600 stores across Southern Africa during the unexpected relocation to temporary premises that we occupied for the two years since the unrest. For a retailer of our size to move and set up a distribution centre while at the same time guaranteeing stock flows without disruption takes a significant team effort and a relentless commitment,” he said.

Pearson listed landlords, Fortress Real Estate Investments Ltd and contractors such as construction firm Abbydale; Conveyor and Racking provider, Conveyall and transport firm, City Logistics, as those who had made it possible to complete and deliver the new premises ahead of schedule.

Jason Cooper, Head of Developments for Fortress said coordination between eThekwini city officials, their professional team, and the contractor, Abbydale, was instrumental in completing the project on very tight timelines.

“All parties worked together very closely with Retailability to ensure early occupation of the property,” Cooper said.

Pearson also acknowledged the commitment by sub-contractors such as Chimera Fire Protection Consultants, Specifire Protection Systems, Alltel, cabling, and Polo Electrical, electrical contractors.

Brian Venter, Managing Director at City Logistics said the goal from the start was to make sure that Retailability could continue trading through a very difficult time. “We made sure we had the required resources available to move equipment and stock over to the temporary facility. We view our clients as our business partners which means we see it as our responsibility to pull out all the stops when it is needed the most,” Venter said.

Conveyall was commissioned in 2021 to design, manufacture, install and commission the material handling system for the new distribution centre. However, during the riots many of the new conveyors, electrical supply and control systems were destroyed.

Bruce Jamieson, owner of Conveyall said they managed to get the temporary distribution centre up and running within weeks with some of the salvaged equipment and receiving conveyors.

“Retailability were at least getting product in and out to their stores,” he said.

Jamieson said what followed was late nights and seven-day working weeks for the crews and factory staff. “Within a record-breaking three months we were able to hand over another completed turnkey distribution warehouse facility to Retailability so they could continue their distribution operations from the temporary premises,” he added.

Conveyall designed a brand-new layout for the newly opened premises at the Cornubia business park which was all manufactured at the company’s Jacob’s factory.

“All these companies would have signed contracts for the work, but their teams went way above and beyond what was on a piece of paper. They worked long hours and over weekends and were proactive to make sure that we could move in ahead of schedule. What we have now is a fully automated, state-of-the-art apparel distribution facility that will serve our needs and more for the next ten years. We are very grateful to our team and partners,” Pearson said.

Growthpoint Properties (JSE: GRT) is moving ahead with its final improvement to the historic Longkloof precinct in Cape Town – the development of the Canopy by Hilton Cape Town Longkloof hotel.

The project was originally planned for completion towards the end of 2021 but was put on hold as South Africa has navigated a period of uncertainty. With increased tourism in Cape Town, and in particular the material growth in tourist numbers over the usually quiet winter months, as well as a general upswing in economic activity evident in the city, Growthpoint believes the time is now right to get the project back on track.

The Western Cape, and Cape Town in particular, have exhibited economic resilience. Semigration from other parts of South Africa to the Western Cape is steady and is boosting Cape Town’s appeal as an attractive city to live and work in. Reflecting this appeal, Growthpoint’s office vacancies in the Mother City are steadily improving and recently dropped below the 10% mark for the first time since 2020, significantly outperforming the SAPOA national average of 15.8% (March 2023).

International tourism has also picked up again, with international flights to Cape Town numbering higher than ever before and a strong flow of tourists year-round. Tourist centres in South Africa are also likely to get a boost from the current exchange rates, with a positive effect on Cape Town’s attractiveness to international travellers.

The heritage-led project to revitalise the Longkloof Precinct includes the renovation of several Growthpoint-owned buildings and the creation of an attractive public yard that connects to the city via four different access points. Growthpoint’s vision was to reimagine the six buildings and vacant parking lot that are made up of a historical school and a historical industrial building with its boiler room as a modern and trendy mixed-use precinct that embodies the essence of this unique city in something new and exciting, yet respectful of its heritage.

The plans were painstakingly developed and refined over several years before work began in 2019, and most elements, with the exception of the hotel, were completed in 2021. This created unique and desirable offices now occupied generally by entrepreneurs, tech and marketing-related companies.

One of the highlight features of the precinct is the 150-room Canopy by Hilton Cape Town Longkloof Hotel – the first of its kind in Africa – which leads out onto the public yard offering curated ground-level retail. The façade of the former MLT House, the structure of which is being incorporated into the hotel, has been carefully preserved and integrated into the new design.

Timothy Irvine, Growthpoint Regional Asset Manager for the Western Cape, says that while delaying construction was correct in the economic uncertainty, market conditions are indicating that it is now the right time to resume work. “The hotel will round off the precinct, which is now ready for it. It will complement the mix of uses and tenancies there,” he says.

These include tech-orientated and entrepreneurial businesses as well as Workshop 17, which is now expanding. Workshop 17 is located in 32 on Kloof, which was the first building in the precinct to be renovated and which opened its doors in August 2019.

The building known as the Refinery, a gracious Herbet Baker-designed historical school building, underwent a modernisation of its services. The buildings known as Darter Studio and Threshers Studio, in deference to their surroundings and former use, were also revamped to create connected office buildings which have proven popular with creative and tech businesses.

There is a total of just under 17,000sqm of space available in Longkloof, of which some 16,600sqm is occupied, and by excellent tenants.

The public yard functions as a central space, along with its connectors into the rest of the city. It was important that it should be accessible to the general public, as something that anyone in the city could enjoy. A new coffee shop, Vine & Dandy, has now opened there, enlivening the space and reinforcing its importance as a place of socialisation and connection.

Irvine believes that the completion of the hotel and its operation under the Hilton Canopy brand will round out the special appeal of the precinct. Careful consideration of the precinct parking requirements and the addition of another 150 underground parking bays to the others in the precinct bolsters the attractiveness of what has already become one of the ultimate spots in Cape Town.

The Longkloof Precinct is on the Mother City’s famous Kloof Street in an area that has a distinctive character and culture. It is rich in history and beautiful buildings – authentically Cape Town.

“Introducing Canopy by Hilton, a hotel that is unique in Africa, to the revitalised Longkloof Precinct is the fantastic final finishing touch to the new dynamic that Growthpoint has created to be a perfect fit for this unique neighbourhood.”