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MSCI South Africa Green Annual Property Index 2024

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The MSCI South Africa Green Annual Property Index for 2024 continued to reinforce the investment rationale for sustainable, resource-efficient real estate.

Published annually since 2016 in collaboration with the Green Building Council of South Africa (GBCSA) and sponsored by Growthpoint Properties (JSE: GRT), the index offers an independent and globally aligned assessment of how green-certified properties compare to their non-certified counterparts in terms of investment performance.

For 2024, the index showed that green certified Prime & A-grade offices produced a total return of 10.1% which was 120bps above that of non-certified office assets of a similar quality during the year. Since the index’s launch in 2016, green-certified offices have outperformed non-certified assets by a cumulative 28.2%, delivering superior capital growth and operational resilience.

Timothy Irvine, Head of Asset Management: Offices at Growthpoint, which is at the forefront of green-building certification in South Africa, comments, “The 2024 MSCI South Africa Green Annual Property Index reaffirms the investment edge of green-certified commercial real estate. The long-term outperformance of green certified offices signals growing occupier and investor preference for sustainable, resource-efficient real estate and reinforces the strategic competitiveness of portfolios with a strong green building footprint.”

Published in April 2025, the 2024 index covered a sample of 242 prime and A-grade office properties with a combined value of R54.7 billion, including 122 green-certified buildings. Reflecting the growing momentum of green certification beyond the office sector, the index also captured the performance of 33 green-certified retail properties.

“The index has shown over several years that green-certified offices typically have better investment returns than non-certified offices. This year’s expansion to include the retail sector is exciting for us and reflects our commitment to supporting the drive for green across all building typologies. Through this expansion, we’re looking forward to tracking these results, and bringing new insights to market,” says Georgina Smit, Head of Technical, GBCSA 

2024 was another year of outperformance for green certified property

This outperformance of green-certified Prime and A-grade offices was driven by a higher capital growth on the back of a 34% higher gross income per square meter, a significantly lower operating cost to income ratio (39% vs 46%) and a 30bp lower capitalisation rate.

For green certified retail property, the outperformance was similar in 2024. Green certified retail property delivered a total return of 13.2%, 130bps higher than that of non-certified retail with the outperformance driven by an 80bp lower capitalisation rate and a 18% higher net operating income per square meter. Similar to the green office sample, certified retail properties also boasted a lower cost to income ratio of 41% compared to the 44% of its non-certified peers.

Green certified offices also had a lower discount rate, driven in part by a lower vacancy rate (11.1% vs 14.8% for non- Green certified prime and A-grade offices) – reinforcing the premium placed on green office accommodation by occupiers and valuers alike.

Long term outperformance

Since the index’s inception in 2016, prime and A-grade green-certified offices have consistently delivered stronger capital growth than non-certified office properties each year, underscoring the resilience and value proposition of sustainable buildings. Green-certified office assets have outperformed their-noncertified counterparts by a cumulative 28.2%.

While the office sector has led the way in the adoption of green certification, the performance advantage is becoming increasingly evident in the retail segment as well—where a similar return differential emerged in 2024, signalling broader market recognition of the investment benefits of sustainable real estate,

“After nine years of consistent outperformance both on valuations and income, there can be no doubt about the fact that certified properties deliver higher returns to investors. The next step in this journey is to show that certified properties better mitigate Climate Risk and MSCI is well equipped to do that,” says Eileen Andrew from MSCI.

Lisa Reynolds, GBCSA CEO, adds, “Our longstanding partnerships around this index are a deep and a solid real investment into providing the property sector with the data and confidence required to build the investment case for green buildings. For some, the question was “Why should I invest in making my property portfolio green?”, now it becomes, ‘Why would I NOT invest in green?’.”

As a leader in sustainable commercial property, Growthpoint holds one of South Africa’s largest and most varied portfolios of green-certified buildings. These assets not only lower the company’s carbon footprint but also support long-term climate resilience central to its ESG strategy. With a clear goal to reach carbon neutrality across its portfolio by 2050, Growthpoint continues to lead in sustainable real estate.

Chief Operating Officer Engelbert Binedell says data from MSCI and the GBCSA is key to shaping Growthpoint’s approach. “We use this data to benchmark performance, refine energy and net-zero targets, and realise the full financial and environmental value of green certification. This data-driven strategy ensures steady progress while meeting the expectations of investors, tenants and society for a low-carbon future.”

Hyprop’s dominant retail centres maintain their growth trajectory

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Hyprop, the JSE-listed specialist retail fund, reported strong performance for the five months ended 31 May 2025. In its pre-close update, the Group expressed satisfaction with the significant progress it has made so far, positioning itself for further growth in the near to medium term.

“Our sturdy performance during the period reflects the dominance and resilience of our portfolios in South Africa and Eastern Europe despite geopolitical challenges,” CEO Morné Wilken said. “We continue to look beyond the short term for organic and new growth opportunities to deliver value for all our stakeholders.

“In line with our growth and diversification strategy, we recently announced our intention to make a voluntary offer for a controlling stake in MAS plc to expand our footprint in the Eastern European market, for which we have raised R808 million via a book build. We believe the MAS plc transaction could be a game changer for Hyprop and will give us access to new countries in the region, namely Romania and Poland. However, before proceeding with the transaction, we must meet certain conditions, with one key condition being approval from our shareholders.

“If this transaction does not proceed, we can effectively deploy these funds into reducing debt in the short term, as well as for asset management initiatives, organic growth opportunities, further solar-PV projects and new investments within Hyprop’s expansion strategy.”

Hyprop is strongly positioned to make investments, with R1.2 billion of cash and R2.2 billion in available bank facilities, after receipt of the capital raise proceeds. The cash injection took the LTV ratio down from 36.3% at 31 December 2024 to 34.2%.

Since the Group embarked on its new strategic journey in 2019, it has made significant progress, including optimising its EE portfolio, settling dollar equity debt in the sub-Saharan Africa portfolio, and selling the sub-Saharan Africa portfolio in return for shares in Lango, a pan-African real estate investment company. In the same period, Hyprop reduced its LTV from a peak of 52%, shaved its euro equity debt from €403 million to €87 million, simplified its structure, improved its credit rating, and continuously invested in enhancing the attractiveness and sustainability of its centres in South Africa and Eastern Europe.

SA and EE centres maintain attractiveness

In the South African portfolio, tenant turnover rose 7% in the five months ended 31 May 2025 compared with the same period in 2024 while trading density increased by 10.2%. At 31 May 2025, retail vacancies were 3.9%, primarily due to Edgars’ rightsizing its stores in the portfolio, which provides flexibility to secure new tenancies to meet shoppers’ demands. The weighted average reversion rate remains in positive territory at 2.9%, and the retail new deal reversion rate was very pleasing at 13.5%.

All the centres have made good progress with letting and projects. Here are some of the highlights:

In the Western Cape, Canal Walk is pleased to see that Edgars is performing well in the new rightsized space, which includes a world-class fragrance and cosmetics offering. Overall, leasing activity has been positive, with office demand increasing significantly. At Somerset Mall, the Phase 2 expansion of the centre is progressing well, and terms have been agreed with several stores which will occupy the expanded area, including Game, Computer Mania, Total Sports, a variety of athleisure and affordable luxury brands such as New Balance, Burnt, Curve Gear, and Napapijri, an international outdoor apparel brand. At CapeGate, the development of satellite offices around the centre on a leasehold basis is still in the early stages, but it is gaining traction and already attracting potential tenants.

In Gauteng, Rosebank Mall enhanced its tenant mix by adding six new stores: Cannafrica, One Stop Travel & Tours, Drip4Life (IV drip experts), Glow Theory (Korean beauty store), John Craig and Cajees (a watch and accessories retailer). Hyde Park Corner will be significantly enhanced in August with the opening of a new Checkers FreshX store. At Woodlands, the Pick n Pay supermarket has rightsized from 5 600m² to 3 636m² and a new lease agreement has been signed with a franchisee. The Glen completed its egress and ingress project in April and is currently refurbishing its exterior signage.

In Eastern Europe, tenant turnover increased by 3.5% and trading density rose by 4.0%, despite a decline in foot count of -3.3% mainly due to non-trading Sundays in Croatia and recent store boycotts related to rising food prices. Despite these challenges, tenant demand remains robust, as reflected in the modest 0.1% vacancy rate at 31 May 2025.

In Croatia, City Center one East and City Center one West continued to broaden their retail offerings. At The Mall in Bulgaria, various projects have been completed to enhance the sustainability and efficiency of the centre: upgrading the lighting system, replacing the water meters to enable remote reading, and replacing the roof structures over the parking ramps with more durable material. Recent highlights at Skopje City Mall include the grand openings of Ehoreca, the official Nespresso reseller in North Macedonia, and the new Gerry Weber mono-brand store that opened in February 2025.

Enhancing energy, water and waste resilience

Hyprop is focusing on solar-PV installations at its centres and is taking the necessary steps to add a further phase at The Glen. Meanwhile, CapeGate, Somerset Mall and Canal Walk are beginning their initial phases of solar projects. In June 2025, the Group will issue a request for proposals to the energy wheeling market to enhance both existing and new solar-PV installations. Once these solar-PV and wheeling energy projects are completed, they are expected to supply more than 60% of the SA portfolio’s energy requirements. Additionally, the total carbon emissions of the SA portfolio, relative to the 2019 baseline which was aligned with Science-Based Targets, will be below the carbon reduction targets set for 2030.

The three-day backup tanks and pumps for potable water have been installed at all Gauteng centres, with similar initiatives set to start soon in the Western Cape. The organic waste recycling initiatives have proven highly effective, with five centres (Canal Walk, CapeGate, Somerset Mall, The Glen and Woodlands) achieving net zero waste status.

Looking ahead

“Our focus is on creating retail spaces that connect people by providing excellent retail experiences for our tenants and shoppers while unlocking value through initiatives within our existing portfolios in South Africa and Eastern Europe,” Wilken said.

“We will continue to pursue both new and organic growth opportunities in our preferred geographies (being the Western Cape and Eastern Europe), reposition the SA and EE portfolios to maintain their dominance and retain and grow market share, annually review our portfolios and recycle capital where appropriate, implement sustainable solutions to reduce the impact of the infrastructure challenges we face in South Africa, and ensure our balance sheet remains robust.

“Hyprop is confident of delivering strong growth in the coming financial year through improved operational performance of its portfolios, including benefits from solar and other energy projects anticipated to come on stream, a reduction in interest costs and the benefits from deploying the additional R808 million of capital, even in the absence of the MAS transaction,” Wilken added.

Hyprop expects to release its results for the six months to 30 June 2025 on or about 16 September 2025.

Redefine signs 37 GWh renewable energy wheeling agreement

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Redefine Properties signs 37 GWh renewable energy wheeling agreement with NOA Trading 

Redefine Properties, one of South Africa’s largest property groups, has signed a renewable energy supply agreement that will meet a significant portion of its total Eskom-connected electricity requirements from renewable energy sources. This agreement, signed with NOA supports Redefine’s decarbonisation efforts through wheeling, while also enabling significant energy cost savings for the JSE listed property company.

With a municipal wheeling solution between the parties to follow as a second phase of the engagement, the initial agreement focuses on Redefine’s Eskom-connected premises across multiple property locations.

“Future-proofing our assets is central to Redefine’s strategy, and this agreement plays a key role in that. By securing renewable energy at scale through wheeling, we’re not only reducing emissions and controlling costs but also building resilience across our portfolio,” said Scott Thorburn, National Asset Manager Commercial at Redefine Properties.

Redefine will receive a carefully crafted blend of renewable energy at 11 of its Eskom-connected properties, ensuring a high level of renewable energy penetration while providing the flexibility to reallocate energy between locations. The agreement will supply 37 GWh per year over a 20-year period, reducing CO₂ emissions by over 39 000 tonnes annually.

NOA, as an integrated renewable energy utility, will source the energy from both third-party Independent Power Producers (IPPs) and its own generation facilities. The aggregated energy will then be allocated to the property group’s designated premises. Most notably, one of the sites that will be supplying Redefine is the Khauta Solar PV project, located near Welkom, Free State. The generation facility is expected to be one of the largest Solar PV sites in South Africa.

“NOA’s bespoke energy products are ideal for property sector customers. By allowing energy reallocation between multiple locations across South Africa, we ensure high renewable energy penetration while limiting the risk of customers paying for unused energy,” said Karel Cornelissen, CEO, NOA.

SOLINK Energy Brokers, a wheeled energy specialist, analysed Redefine’s energy needs and sustainability goals, sourced NOA as the ideal supplier, and supported the deal through to signature.

This agreement underscores the critical role of energy traders and aggregators in supporting the decarbonisation of the property sector, where rooftop and onsite energy solutions often have limitations.  By providing tailored renewable energy solutions, NOA enables large-scale property groups to structure both commercially accretive and environmentally compelling energy agreements.

“The property sector is a key growth area for NOA, offering solutions that can achieve over 80% renewable energy penetration through a phased supply framework,” concluded Cornelissen.

 

Art puts the heart into student living

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New mural in a Johannesburg campus community reminds students where they’re from, where they’re going – and that they are not alone.

Sleep, study, eat. Sleep, study, eat.

Sleep, study … art?

For tertiary level scholars studying in Johannesburg, far away from their roots and often with the weight of their family’s expectation on their young shoulders, the chance to find beauty and breathing space amidst the relentless learning may seem like a fanciful dream. However, at Thrive Student Living’s new Arteria Parktown 500-bed student residence, the art is right there in – even on! – their custom-built home away from home.

Local poet, healer and multi-disciplinary artist Thobile Mavuso was commissioned by Thrive Student Living to create a mural for the R200-million Arteria Parktown property and designed a unique artwork that encapsulates both the displacement and excitement of student life in “res”. The piece is fittingly entitled Ukuzilanda Ukuzilandela Nokuzelapha, which loosely translates as “to return to one’s roots is to care for and heal oneself.”

For artist Thobile – who is currently doing a master’s degree in Fine Art at the University of the Witwatersrand – those roots are in her Ndebele background, echoes of which are found in her vibrant yet restful mural. Painted on an internal courtyard wall in acrylic, using a palette of teal, yellow ochre, red and green, this vast piece features a circle of connected figures in traditional headdress… or perhaps a tangle of opening flowers… or perhaps a patchwork of homesteads amidst fields…

Whatever, it begs to be looked at, to be contemplated.

And that is precisely the point.

The Arteria Parktown mural, says Thobile, explores “the wounding that comes with displacement, dispossession and landlessness that many South African people experience, which often leads to a loss of cultural identity, heritage and traditions.”

The interplay depicted between the human body and the land communicates the interconnectedness of the two, she explains. “It encourages enquiry into one’s history, roots, and imvelaphi – one’s origins – as a means of care and healing. The artwork aims to suggest that through knowing who one is they may find what they are not.”

Thobile was commissioned by Thrive Student Living in consultation with Latitudes, the curated online market for art from Africa, and South Africa in particular. This collaboration was a natural one, as Latitudes’ inclusive ethos mirrors that at Thrive.

“Latitudes is not just a marketplace but an educational platform about and for art,” says co-founder Roberta Coci. “The difference is in our approach. We are flexible, inclusive, and insistent on equitable participation for all players, from the artists, like Thobile Mavuso, to the galleries, curators, and the collectors – many of whom first find the courage to start buying art through our open, inclusive showcase.”

Thrive Student Living benefits from Growthpoint Properties’ award-winning green building initiatives and ongoing mission to create healthy, sustainable environments, with a socially conscious mandate.

“We believe in lifting as we rise and endeavour to partner with members of the university community where possible,” stresses Amogelang Mocumi, Fund Manager of Growthpoint Student Accommodation, which operates Thrive Student Living. “The decision to partner with Thobile was easy given that she is a Wits student and her work resonates with what Thrive Student Living stands for.”

Thrive offers tailor-made campus communities, which include study areas, games rooms, gyms, and backup power and water. Its Student Life programme offers round-the-clock support for students, encompassing everything from academic performance to physical health and mental wellness. It is this unique approach that gives parents and bursary providers peace of mind, knowing students are in a fully supportive environment. Ukuzilanda Ukuzilandela Nokuzelapha is a visual extension of this spirit, believes Amogelang.

“Art is a language, a universal form of expression,” he says. “When students who are sitting in the courtyard underneath this wonderful mural, and they then read the plaque detailing its inspiration, they find new meaning in it and derive their own meaning from it.”

Commissioning Thobile Mavuso proved the perfect fit: she is young, female, vibrant, upcoming, locally-based in Joburg, multidisciplinary – she works in paint, photography, text, sound, and printmaking – and a student too, with her own complicated history. Born and bred in the city, she has long wrestled with her Ndebele culture. She started writing poetry in earnest at the age of 11 to process her emotions around troubles at home, culminating in the publication of her award-wining anthology Songs Broken Women Sing in 2019.

“This latest artwork calls for its viewers to remember who they are no matter how far away they may feel or be from their ancestral lands and events,” she says. “Their work is to celebrate their culture, and to keep it alive. Culture, like art, is a living thing.”

Growthpoint thriving bee hives at Woodlands Office Park

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Buzzworthy news for World Bee Day: Growthpoint hosts eight thriving bee hives at Woodlands Office Park 

In the heart of Johannesburg’s north, a quiet, vital workforce has been thriving for the past six years at one of the city’s foremost office addresses. Eight honeybee hives nestled within the lush grounds of Growthpoint Properties’ The Woodlands Office Park in Woodmead are always hard at work, and this year they’re also creating a buzz for the UN designated World Bee Day on 20 May.

The World Bee Day 2025 theme “Bee inspired by nature to nourish us all”, highlights the critical roles bees and pollinators play in agrifood systems and the health of our country’s, and our planet’s ecosystems. The Woodland’s bees exemplify this sentiment.

Set in a 43-hectare game park, The Woodlands is already known for its remarkable blend of nature and business. With tranquil waterscapes, rich birdlife, and freely roaming buck and other small animals, it offers an unmatched environment for both productivity and peaceful retreat. With its resident bee colonies, it’s also playing a small but meaningful role in supporting South Africa’s embattled pollinator population.

Pollinators in peril

South Africa is facing a serious shortage of bees, beekeepers, and secure forage sites—conditions that are critical for agricultural pollination. The eight hives at The Woodlands represent a fraction of what’s needed nationally, but they matter because they form part of a larger ecosystem of conservation-aware stewardship.

Bees pollinate roughly 70% to 80% of the foods we eat. Of the 1,258 known species in South Africa, only two can be domesticated in hives (but not in the same regions) and they are stretched thin.

How do these office-park bees support agrifood systems?

The Woodlands colonies are among the 700 that seasonally support macadamia orchards in Barberton, where their pollination boosts crop yields by as much as 70%.

To pollinate South Africa’s 78,000 hectares of macadamia trees, an estimated 312,000 colonies are needed. Yet the total number of managed colonies nationwide barely exceeds that. Add apples, avocados, butternuts and berries to the mix, and the deficit becomes even more alarming.

During off-season periods when farms must be treated with pesticides, these bees require safe, forage-rich refuges. The Woodlands, with its flourishing stands of acacia, paperbark, fever trees, soetdoring and select non-invasive eucalyptus species, offers exactly that.

Why bees belong

By maintaining safe, pesticide-free apiaries like those at The Woodlands, Growthpoint contributes to pollinator conservation and, by extension, national food security or, as this year’s World Bee Day theme highlights, nourishing us all.

As a bonus, each hive, which has one queen bee fiercely protected by her colony, produces up to 30 kilograms of honey annually under ideal conditions, though recent erratic weather patterns have dampened yields across the country, from Gauteng to Limpopo.

“This initiative reflects the value of adaptive, site-specific stewardship. The hives benefit from an abundant local food source, contributing to a healthy and balanced ecosystem within the park,” says Martjie Cloete, Growthpoint Properties Sustainability Manager – Projects.

She adds, “Every small act counts in safeguarding our pollinators. The Woodlands bee project is a reminder that even in urban settings, nature can thrive when given the chance and when our environment is treated as a vital part of our future.”

Emira’s beehives are a sweet investment in tomorrow

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This May, pinstripes are out and bee stripes are in. The United Nations has declared 20th of May World Bee Day, providing the perfect opportunity for Emira Property Fund to celebrate the success of its own tiniest, busiest VIP – Very Important Pollinator – tenants.

For the last five years, SA REIT Emira (JSE: EMI) has been quietly putting its weight behind an essential global commodity: bees. During that time, the fund’s littlest property investment has become one of its proudest, with 14 beehives at five of its properties, all abuzz with activity.

As Ulana van Biljon, Chief Operating Officer of Emira, explains, “The beehive project was chosen to highlight the decline of global bee populations, because bees and other pollinators are under serious threat, yet they contribute so much to society, as well as to the biodiversity of our properties. Our hives provide a safe place for honeybees to live and breed.”

According to the United Nations (www.un.org/en/observances/bee-day) over 75% of the world’s food crops – nutrient-dense fruit, vegetables, nuts and seeds – and 35% of global agricultural land depends on animal pollinators. The greatest of these are the 20,000 species of bees worldwide.

In 2020, Emira began installing beehives at eight of its properties in Gauteng and KwaZulu-Natal. Subsequently, three of the properties were sold, so currently Emira has 14 hives across five properties.

“Our bee conservation project is a holistic approach to reducing the impact of environmental degradation, which goes beyond planting trees,” says van Biljon.

The first Emira hives were installed at Knightsbridge office park in the heart of the Bryanston business node, and Hyde Park Lane, a tranquil corporate address in Sandton. These sites were selected, according to van Biljon, “due to their safe site location, the biodiversity of the surrounding landscape and the abundance of flowering plants which provide the nectar flow for the bees to produce honey.”

Both bee and human welfare concerns were carefully considered, she adds, noting that the public live in harmony with bees anyway: there are many natural swarms of bees throughout South African cities. Emira’s beehives are managed in a secure, controlled environment, away from areas of heavy foot traffic and clearly sign-posted, while beekeeping activities take place at night.

The results so far have been sweet: the busy little workers have produced 106kg of honey for the March 2025 harvest from four apiary sites, namely Knightsbridge (19kg), Hyde Park Lane (16kg), Wonderpark (53kg) and Albury Park (18kg). A by-product of the conservation initiative, the honey is harvested after the summer months when the bees produce a surplus.

However, no honey could be harvested from the two hives at One Highveld, as both underwent “absconding” at the same time – absconding being a normal phenomenon within honeybee hives, part of a cycle in which an old queen is replaced with a younger one. Any existing honey was then “stolen” by other honeybees, another natural turn of events.

The honey was shared among Emira staff and tenants, creating awareness of the importance of preserving biodiversity. To the delight of the recipients each harvest tasted unique as bees tend to collect nectar within 3km of their hive. This meant Johannesburg honey was crafted largely from exotic garden ornamentals like jasmine, lavender, rosemary and jacaranda trees. Meanwhile, in Pretoria North – where hives are situated at Wonderpark Shopping Centre – an abundance of indigenous plants, acacias, and grassland flowers created honey with darker, flavourful herbal tannins.

“This biodiversity is vital for healthy ecosystems, which support both human well-being and the economy,” says van Biljon. “Healthy ecosystems form the ecological infrastructure of the country, providing clean air and water, fertile soil and food.”

The bees must have realised they were on to a sweet rent-free deal at Emira: in April 2024, passing bees took up residence in a pylon at Boskruin Shopping Centre, not an ideal location. Once they were safely removed by a beekeeper, catch hives were installed to prevent more unplanned bee incursions. These will capture swarming honeybees, allowing them to be relocated to suitable sites within the Emira portfolio, or to commercial farms within the region. Thus, urban sites remain safe, and honeybee stocks are secured.

As part of Emira’s dedication to best environmental, social and governance (ESG) practices, it has also committed to a “No Net Future Loss” policy, conserving and promoting biodiversity across its portfolio and reducing the company’s impact on the environment.

“The country’s natural ecosystems are threatened by land use change, degradation and invasive alien species,” says van Biljon. “Climate change worsens these threats, but healthy ecosystems offer natural solutions that increase resilience. They protect communities from extreme weather events and enhance natural resources, livelihoods, food security and habitats for animals and plants.”

With the beehive project, Emira is putting the bee firmly into business, living up to its reputation as a truly diversified, balanced real estate investment trust.

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