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Spear REIT’s new Independent Non-Executive Director

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Spear REIT welcomes Joan Solms as Independent Non-Executive Director

Spear REIT Limited (JSE: SEA), a leading real estate investment trust with a dedicated focus on the Western Cape, has announced the appointment of Joan Solms to its board. A distinguished professional in the property industry, Solms joins as an independent non-executive director and member of the audit and risk committee, effective 1 April 2025.

Solms brings significant experience in banking and financial services, particularly within the property sector. A qualified chartered accountant with over two decades of expertise in property and investment banking, she has held several high-profile leadership roles; most recently serving as executive vice president of Standard Bank’s corporate and investment banking division, where she led the Western Cape real estate finance division until November 2024.

Prior to that, Solms served as executive director and chief operating officer of Ingenuity Property Investments Limited, a JSE-listed property investment company. Recognised for her exceptional contributions to the South African property industry, she was named Women’s Property Network’s Professional of the Year in the private sector in 2017.

Commenting on the appointment, Quintin Rossi, CEO of Spear REIT, said:

“We are honoured to welcome Joan to the Spear board. She is a highly respected expert in her field, and her vast experience in the Western Cape property market—particularly in financial services and banking—will add significant value to our team. This appointment comes at a crucial time in Spear’s growth trajectory, and we are excited to have someone of Joan’s calibre join us on this journey.”

Solms reflects on her appointment as a full-circle moment, recalling one of her earliest major banking transactions – assisting the founders of Spear with their initial funding.

“It’s remarkable to see how far Spear has come since those early days. I fondly remember my time at Nedbank in 2011 when I facilitated their initial funding, long before their JSE listing in 2016. Spear’s ethos and commitment to fostering a culture of goodwill, particularly in developing and empowering women in the property sector, resonate deeply with me. I am looking forward to contributing to the company’s continued success.”

Solms’ appointment highlights Spear’s unwavering commitment to maintaining a Board of Directors that are dynamic and experienced professionals with top-tier industry expertise as it continues to expand its presence in the Western Cape real estate market.

Burstone Group trading update for the year ending 31 March 2025

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Background

Burstone is a fully integrated real estate investor, fund and asset manager that has c.R42 billion gross asset value (“GAV”) under management and c.R25 billion third-party assets under management (“AUM”). Approximately 69% of the Group’s GAV is offshore, across western Europe and Australia. The Group’s AUM is set to increase in the short to medium term as the Group executes and grows its fund management platforms.

Strategic highlights

The Group has made significant progress over the past year in executing its stated strategy and growing its fund and asset management platforms.

  • Total third-party AUM grew from R8.9 billion to c.R25 billion with total fee revenue expected to comprise c.11% of earnings (Mar-24: 7.3%).
  • Europe:
    • Strategic partnership between the Group’s Pan European Logistics (“PEL”) portfolio and funds managed by affiliates of Blackstone Inc (“Blackstone”) (“the Blackstone transaction”) completed on 12 November 2024. The transaction has launched Burstone’s European funds and asset management strategy.
    • Burstone retains a 20% co-investment in PEL and retains the asset management of the c.€1 billion PEL portfolio.
  • Australia:
    • Irongate continues to provide a strong platform for Burstone to grow its fund management activities in Australia.
    • During the year, Irongate established an industrial platform with TPG Angelo Gordon, a global diversified credit and real estate investing platform within TPG, with approximately US$91 billion assets under management.
    • The new industrial platform has already concluded the acquisitions of A$280 million of industrial logistics assets in New South Wales and Queensland, deploying approximately A$133 million of equity into four Burstone’s equity investment into this platform, alongside TPG Angelo Gordon, is c.A$20 million (15%).
    • Irongate now manages c.A$625 million of equity across office, industrial, retail and residential assets from last year for some of the world’s leading real estate investors (Ivanhoe Cambridge, Phoenix Property Investors, Metrics Credit Partners and TPG Angelo Gordon). AUM has grown 28% over the period.
  • South Africa:
    • Burstone has made significant progress with a cornerstone investor to seed and then build to scale a South African focused diversified real estate platform (“SA Core Plus platform”). All material due diligence is now complete subject to various investment approval processes.
    • Burstone is targeting implementation of the SA Core Plus platform on the following basis:
      • Burstone to seed the platform with up to c.R5 billon of South African retail and industrial assets that fit within the investment mandate.
      • Burstone is expected to retain a significant equity interest in the SA Core Plus platform, which proportion of equity should naturally reduce over
      • A target LTV of 40%.
      • Burstone will act as a fund and asset manager of the SA Core Plus
    • The launching of the platform is anticipated before the end of the calendar Shareholders will be kept informed as key milestones are achieved.
  • Maintaining a robust balance sheet:
    • De-gearing and loan to value (“LTV”):
      • Post the implementation of the PEL strategic partnership with Blackstone, the Group settled debt of c.R5 billion.
      • Disciplined and continued capital recycling resulted in South African asset sales of approximately R0.9 billion in FY25.
      • Funding of capital expenditure and further investment into Australia, alongside TPG Angelo Gordon, partially offsets the reduced gearing impact of the Blackstone transaction and South African sale of assets.
      • The Group expects its LTV to be between 34% and 36% for
    • Successful refinancing of R6.6 billion of Group ZAR and EUR debt in August 2024 that has improved margins, extended the debt profile and provided greater flexibility with respect to sales and facility settlement.

Overall Group performance

  • The Group is expected to deliver full year results in line with previous full year guidance provided of approximately 2% to 4% lower than the 2024 financial year (“FY24”). This would deliver FY25 distributable income per share (“DIPS”) of between 101.44cps and 103.56cps (FY24: 105.67cps).
  • The dividend payout ratio is expected to be in line with the interim period (i.e. 90%), resulting in an expected increase in dividends per share of between 2% to 4% compared to FY24.
  • Key elements which have underpinned the Group’s performance:
    • The South African base like-for-like (“LFL”) net property income (“NPI”) is expected to be in line with the prior year, reflecting a resilient retail performance which is offset by declining growth in the office portfolio which continues to be impacted by negative
    • The European business is expected to deliver a marginal increase in LFL NPI mainly driven by positive rental reversions and indexation.
    • Group fee income is expected to grow significantly over the period, driven by European and Australian fund and asset management activity, resulting in fee income representing approximately 11% of earnings (FY24: 7.3%).
    • The Group has continued to focus on cost optimisation initiatives with operating costs expected to increase by between 1% and 2%.
  • Group net interest costs are expected to decline significantly, impacted by:
    • Proceeds from the Blackstone transaction and proactive refinancing efforts that have reduced the all-in cost of debt;
    • Partially offset by further investment in the Group’s Australian platform and maintenance capital expenditure in South Africa; and
    • The c.R0.9 billion in South African asset sales at a c.2.5% discount to book value, that led to net interest savings and contributed to a lower LTV ratio. However, the transactions were earnings dilutive.
  • The Blackstone transaction, which was effective from 12 November 2024, is expected to be marginally accretive on the Group’s results in FY25.

Performance of the South African business

  • LFL base NPI for the South African portfolio is expected to be in line with the prior
  • Total average vacancies across the portfolio are expected to increase to 5.5% (Mar-24: 4.2%) driven by a large industrial asset that became vacant in the second half of the year.
  • Total reversions over the period are expected to improve to negative c.5% (Mar-24: negative 3%).
  • The retail sector continues to deliver positive NPI growth, however, results have been impacted by the redevelopment of Zewenwacht Mall and associated vacancy linked to the introduction of a new second anchor.
  • The office sector continues to face negative reversions of c.20% (Mar-24: negative 6%) and average vacancies of c.8% (Mar-24: 6.4%).
  • The industrial sector has experienced strong letting activity with overall reversions of negative 5% driven by long dated leases of negative 17%.

Performance of the European business

  • The performance of the PEL platform is expected to deliver a positive LFL NPI growth mainly driven by positive rental reversions (c.13%) and indexation (c.4%), partially offset by higher average vacancies of c.4% (Mar-24: 1%).
  • Burstone has decided not to pursue the co-investment opportunity in the German light industrial platform. As such, the third-party management contract ended in December 2024.

Performance of the Australian business

  • The Group’s investment in Irongate continues to perform well, benefiting from the significant

growth in AUM and underlying real estate performance which is in line with the deal thesis.

  • The Irongate Group is well positioned to capitalize on a strong pipeline of
  • Irongate’s co-investment in the industrial platform with Phoenix Property Investors is performing well. The latest valuation shows a c.11% increase in asset value, driven by positive rental reversions and full occupancy, highlighting the platform’s strong leasing performance.

Proactive balance sheet management and successful debt refinancing

  • Successful refinancing of R6.6 billion of Group ZAR and EUR debt in August 2024 that further improves the Group’s funding and liquidity profile.
  • The PEL portfolio was successfully regeared and refinanced post the Blackstone transaction, extending the debt tenor in the platform to 5 years.
  • As at the date of this announcement, the Group holds R2 billion in undrawn committed available facilities and cash, excluding proceeds from disposals that have yet to be completed.
  • The Group remains well-hedged, covering over 90% of its interest rate exposure at rates below current market levels.
  • The Group’s investment in PEL has been hedged at 100% through a combination of Euro debt and Euro cross currency interest rate swaps (“CCIRS”) following the strategic partnership.
  • The Group’s investment in Australia is also 100% hedged AUD/ZAR via CCIRS in line with the Group’s policy.
  • The Group has R13 billion direct on-balance sheet property investments and c.R2.4 billion equity investments in fund management platforms.

Concluding remarks

The Group’s real estate portfolio is performing as expected and in line with guidance. Strategically the Group is pleased with the progress made across the business, notably in:

  • De-gearing the balance sheet, reducing LTV significantly;
  • Establishing a funds management business in Europe;
  • Driving solid AUM growth in Australia;
  • Advancing exclusive negotiations in South Africa to develop a fund management strategy;
  • Capitalizing on the internalisation, making strong strides in leveraging the Group’s platforms, processes, skills, and expertise across regions; and
  • Successfully refinancing debt while maintaining prudent balance sheet

The Group will continue to focus on the recycling of direct on-balance sheet investments and using the proceeds to co-invest in fund management platforms, which will result in a significant increase in third party funds under management.

Expanding the Group’s fund and asset management model offers multiple benefits for Burstone, particularly the ability to achieve enhanced integrated real estate returns. This approach combines traditional real estate asset yields with additional upside from operating a funds, investment, and asset management model, where the Group can earn management, leasing, and acquisition fees, as well as potentially generate performance fees through outperformance.

This hybrid model of traditional real estate investment, integrated with expertise across fund management, investment management, asset management and development management supports the Group’s strategy of delivering enhanced returns on capital deployed and maximising operational leverage from its scalable platform.

The year ahead offers great opportunity for the Group as it looks to execute and grow the fund and asset management platforms.

 

Hyprop delivers strong half year results

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Hyprop delivers strong half year results laying the foundation for further growth

Hyprop Investments, a specialist property retail fund listed on the JSE and A2X, published strong half year results for the period ended 31 December 2024, reporting double-digit growth in distributable income of 14.5% to R765 million and 14.4% increase in distributable income per share to 201.4 cents. The Group declared an interim dividend of 113.43 cents per share, equating to 95% of the distributable income from the SA portfolio for HY2025.

“The solid performance for the period is a result of the transformative strategic priorities outlined in 2018. The improved trading metrics of our portfolios affirm our centres’ relevance in their respective markets, coupled with our shoppers’ loyalty and resilience during the challenging economic times,” says Hyprop CEO Morné Wilken.

“Our confidence is based on the fact that our centres in South Africa and Eastern Europe are located in key economic nodes and supported by our management teams who have strong retail property expertise.”

For the period, Hyprop maintained a strong liquidity position and held R807 million of cash and R1.1 billion of available bank facilities. As a result of the recent sale of its sub-Saharan Africa portfolio to Lango Real Estate in exchange for shares, Hyprop has been released from all guarantees and commitments to the lenders relating the Africa debt. The balance sheet reflects a steady loan to value (LTV) ratio at 36.3% and cash collections from tenants in South Africa and Eastern Europe at 99.8% and 100.8% of net billings, respectively.

South African portfolio

“All key trading metrics were positive in the six months to end-December 2024. There was a slight increase in vacancies to 2.4% (excluding Pick n Pay at Hyde Park Corner, where Checkers has been secured as a replacement tenant), which is mainly due to rightsizing some anchor tenants’ stores which is in line with strategy. The low vacancy rate creates flexibility to improve and optimise the tenant mix,” Wilken says.

Tenants’ turnover rose 4.9% compared to the same period in 2023, while trading density (rands per square metre per month) lifted by 4.4%.

In this period, management focused on pursuing organic growth opportunities, such as the Somerset Mall expansion and the development of satellite offices around CapeGate Shopping Centre on a leasehold basis with development partners SOM and Giflo.

At Canal Walk, Western Cape’s only super-regional, new concepts such as the first JD Sports in the country, the first stand-alone Silki store in South Africa, and the maiden flagship store for Shift Espresso Bar were introduced. After rightsizing, the Edgars store on the first floor is trading extremely well, and the space it has vacated has been re-let to Jet, Home. Tech. Sleep. and another national tenant.

Somerset Mall is making good progress on its two-year expansion project to add 5 500m² of GLA for 50 new stores, retile and improve the centre’s flow. CapeGate’s initiatives to enhance the overall shopper experience included the installation of an advanced audio system and improved signage. The roof is being refurbished to enable the installation of 5 MW of solar panels. The centre management team at Table Bay Mall has been strengthened, following its acquisition in Hyprop’s 2024 financial year.

In Gauteng, Rosebank Mall has introduced several unique concepts and completed various projects, including upgrades for Tap & Go/Apple Pay at all pay stations and the control room, as well as the installation of e-hailing screens in the waiting areas. A new Checkers FreshX store is under construction at Hyde Park Corner and is scheduled to open in July 2025. Clearwater Mall, Woodlands and The Glen opened several new stores, all enhancing each centre’s tenant mix.

The SA portfolio’s distributable income grew to R454 million in the six months to end-December 2024. Excluding Table Bay Mall, rental and other lease income increased by 4% compared with the same period in 2023 and total revenue was up 4.7%. Utility costs were lower than in the comparable period, due to the reduction in loadshedding and the additional solar plants commissioned at Woodlands, Clearwater and Table Bay Mall. Net property income increased by 18.6% (10.7% excluding Table Bay Mall) over the first half of the 2025 financial year.

Eastern Europe portfolio

Tenants’ turnover grew 8.8%, with trading density increasing by 7.1%. There is strong demand for space in Hyprop’s four centres, which is reflected in the modest 0.2% vacancy rate at 31 December 2024.

City Center one West completed an extension and upgrade of its food court, introducing five new restaurants, while City Center One East, The Mall and Skopje City Mall attracted several high-profile tenants. At Skopje City Mall, Cineplexx renovated its cinema halls and successfully launched M House, a new roastery café, enhancing the food court’s offering.

Distributable income from the EE portfolio was R308 million, an increase of 34% over the comparable period, despite the rand strengthening by 4% against the euro. In euros, total revenue increased by 11%, due to indexation increases and strong growth in turnover-based rentals. Property expenses rose 9%, mainly because wages across the region increased, resulting in a 12% improvement in operating income.

ESG

Various energy initiatives are being pursued to manage energy costs and carbon emissions and ensure uninterrupted trading. As previously communicated, power purchase agreements (PPA) for solar energy are in progress. To protect the supply of water, backup tanks are being installed at Gauteng centres, while similar initiatives are planned for the Western Cape centres, based on recent water audit findings. Over the last five years Hyprop reduced its electricity usage by 29.6% and water consumption by 10.2%.  Five of Hyprop’s centres have achieved net zero waste status and diverted 544 tonnes of organic waste from landfills.

The Group’s total contribution towards CSI projects in the six-month period was R7.7 million.

Outlook

Wilken said, “Hyprop’s management team will pursue its five strategic initiatives: pursuing new and organic growth opportunities; repositioning in South Africa and Eastern Europe to maintain the centres’ dominance and grow market share; annually review and, if appropriate, recycle assets; implement sustainable solutions to offset infrastructure challenges in South Africa; and protect the robustness of the balance sheet.”

Hyprop expects to meet the higher end of its guidance communicated in September 2024 of a 4% to 7% increase in distributable income per share for the full year to 30 June 2025.

The Group’s board has decided to increase its dividend payout ratio to a payment of an interim dividend equivalent to 95% (previously 90%) of the distributable income from the SA portfolio and payment of a final dividend on finalisation of the Group’s annual audited results, so that the total distribution for the financial year (including the interim dividend) is equivalent to 80% (previously 75%) of the Group’s distributable income from the SA and EE portfolios.

“As a business, we are confident in our ability to continue our growth trajectory, supported by the strength of our retail centres in South Africa and Eastern Europe. We are optimistic about the exciting projects in our pipeline, which align with our strategic priorities and will drive sustainable value for all our stakeholders,” concludes Morné Wilken.

Vukile acquires flagship Spanish mall in EUR305 million deal

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Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), through its 99.5% held Spanish subsidiary Castellana Properties, has acquired the largest shopping centre in Spain’s Valencia province, the iconic Bonaire Shopping Centre, from multinational retail REIT Unibail-Rodamco-Westfield. The purchase consideration of EUR305 million represents an attractive entry yield of approximately 7%.

 The acquisition of the centre, considered a Top 10 shopping centre asset in Spain, was initially delayed due to torrential flash flooding in the Valencia Region in October 2024. As part of the centre’s reinstatement, Unibail-Rodamco-Westfield fully refurbished the ground floor’s common areas and retail units, with many retailers simultaneously taking the opportunity to upgrade their stores and introduce new concepts.

Bonaire Shopping Centre reopened to record footfalls on 13 February 2025, further confirming its position as the leading shopping centre in its region.

Laurence Rapp, CEO of Vukile Property Fund, comments: “We are thrilled to have secured this exceptional asset from Unibail-Rodamco-Westfield further cementing Castellana’s position as a leading player in the Iberian retail property market. This accretive deal is our biggest by value to date and furthers our growth in Spain with a market-leading institutional grade asset.”

 The acquisition is being funded with the EUR200 million proceeds from the sale of Castellana’s stake in Lar España.

Rapp adds, “We made a tremendous profit of around EUR80 million on the Lar España trade and to redeploy the proceeds so quickly into such a high-quality asset and ensure no cash leakage is testament to our team’s deal making expertise.”

Further emphasising the transformational year of growth for Vukile, Rapp highlights Castellana’s strategic expansion into Portugal, where it has acquired four shopping centres since September 2024, funded with proceeds from the R1.5 billion raised by Vukile in September 2024.

These transactions are testament to Vukile’s and Castellana’s entrepreneurial and agile edge in the Iberian retail market, where local market knowledge, speed and creative deal-making are critical to success.

As part of the acquisition of Bonaire, Castellana has received an 18-month net operating income (NOI) guarantee. The centre currently has ample parking readily available, and its underground car park is expected to be reinstated and reopen by mid-2025 at no additional cost to Castellana.

Bonaire Shopping Centre is in Valencia, the third largest city, fourth most popular tourist region and third most populous residential area in Spain, boasting consumers with incomes well above the national average. Valencia has attracted the third highest level of investment in Spain over the past five years. It enjoys exceptional links to local and international markets, with the second largest port in Spain and the fifth largest in Europe. It connects to all major cities in Spain via Spanish high-speed AVE trains, which operate on the longest high-speed network in Europe. Furthermore, the Valencia Airport is located very close to the centre.

As the leading and top-performing shopping and leisure destination in Valencian province, the open-air centre has a proven trading track record with market-leading, above-market sales density and footfall averages. It boasts an impressive 99% long-term occupancy rate with a diversified mix of highly attractive brands, appealing to customers from across the entire region. Tenants include six Inditex fashion brands including Zara, as well as Primark, JD Sports, Cinesa, Mango, H&M and Fnac, to name a few. Bonaire also features a top-floor leisure, food and beverage area that was refurbished in 2016. The 138-store, 55,800sqm gross lettable area (GLA) centre acquired by Castellana is linked to an Alcampo hypermarket, which takes the total property to 78,000sqm. Further, Bonaire is part of a powerful retail node of 135,200sqm and 151 stores, including Leroy Merlin, Decathlon and leasing Scandinavian furniture retailer JYSK.

For Castellana, the transaction further strengthens its already strong portfolio of dominant shopping centres in Iberian regional cities and expands its footprint on Spain’s east coast. Vukile and Castellana excel at consistently adding value to high-quality retail assets, and the 10,000sqm of immediate expansion potential at Bonaire creates ideal strategic alignment with Castellana’s on-the-ground asset management and development expertise. Bonaire also aligns with its ESG goals, having earned an “outstanding” BREEAM score for management and an A-grade EPC certificate.

For Vukile, the deal scales up its Spanish investment. From a zero base in July 2017, following the Bonaire Shopping Centre acquisition approximately two-thirds of Vukile’s assets will be offshore in the Iberian Peninsula, in the high-growth, attractive markets of Portugal and Spain.

Stor-Age success story goes passed half a Million customers

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Stor-Age – The South African Real Estate Success Story Goes Passed Half a Million Customers

Stor-Age Property REIT Limited, South Africa’s leading and largest self storage property fund, has now passed the 500 000 customer mark since inception, a significant milestone for the business and the sector. Stor-Age, the only self storage REIT listed on any emerging market exchange, now trades from a portfolio of more than 100 properties spread across South Africa and the UK.

 Now in its 19th year of trading, Stor-Age has grown from its first property in Edgemead, Cape Town, to a total of 107¹ properties across South Africa and the UK. During this time, the company grew to become the largest operator in the region, listed on the JSE, strategically entered the UK market in 2017 and has successfully grown it’s UK brand, Storage King, to become the fifth largest operator in the country.

With a total investment property value of more than R17.0 billion¹, the company now offers over 600 000m2 of space to the public and looks after more than 52 000 customer’s goods across both markets. While the company has achieved remarkable growth, it has also successfully increased the occupancy in its owned portfolio to more than 91.0%.

While Stor-Age, one of only 11 publicly traded self storage Real Estate Investment Trusts (REITs) globally, has outperformed the listed property index (SAPY) by 150% since listing in 20152, the company has also performed well against its international peers. Data released by Blue Gem Research3 in their February 2025 valuation update note shows that Stor-Age’s five-year total return ranks in fourth place globally against other self storage REITs. This is ahead of National Storage, Australasia’s largest self-storage owner-operator, Shurgard, which operates across seven European markets, and the two largest operators in the UK, Big Yellow and Safestore.

Comments Carlo Bondesio, Stor-Age Head of Operations in South Africa, “Stor-Age is a wonderful South African success story, growing from humble beginnings as a family business in 2006 into one of the leading self storage operators globally and also being one of the standout performers amongst JSE listed REITs over the last decade. Looking back on our listing on the JSE nearly ten years ago, we’ve grown the business from around 130 000m2 to approximately 610 000m2 today and expanded our portfolio from 24 properties at listing to 107 across two markets. While successfully servicing over 500 000 customers is a significant milestone for us, we are still deeply rooted in our values and vision to become the best self storage business in the world.”

With deep product understanding and experience in both an emerging and first-world market, Stor-Age has bold growth ambitions to further expand the portfolio. The company currently has a pipeline comprising 48 000m2, with 11 projects at various stages of completion. Now entering their next five-year strategic growth cycle, Stor-Age plans to continue growing in both markets through new developments, the expansion of existing properties, strategic joint ventures and its highly specialised third-party management offering.

​The key to Stor-Age’s success since its inception lies in its strategic focus on prime property locations, a deep product understanding, a customer-centric approach, operational excellence and the integration of technology and digital marketing capabilities. Added to that, the self storage sector is a growth sector globally and has also continued to demonstrate remarkable resilience – as evidenced during the Global Financial Crisis and the COVID-19 pandemic.

As Stor-Age looks to the future, the company remains confident in its growth prospects with an excellent opportunity to further expand its presence in both markets.The share closed yesterday at R14.31.

Office parks reimagined

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Office parks reimagined: When sustainability meets market leadership

By Samantha Lambert, General Manager, Redefine Properties

In an era of unprecedented environmental and operational challenges, South Africa’s office parks stand at a critical juncture. Energy insecurity, water scarcity, and ageing municipal infrastructure are no longer distant concerns but immediate challenges that demand innovative solutions. Yet, within these challenges lies an opportunity to reimagine office parks as beacons of sustainability and operational resilience.

The business imperative for sustainable office parks

Sustainable office parks are no longer just an environmental consideration; they are a business imperative. Unreliable municipal power supply and recurring water shortages directly impact operational continuity and tenant satisfaction. Simultaneously, tenants and investors increasingly demand spaces that combine operational resilience with environmental responsibility. This convergence of operational necessity and stakeholder expectations is reshaping how we approach office park development and management.

Black River Office Park in Cape Town’s Observatory district exemplifies this transformation. The park’s evolution has been accelerated by significant node activation, including Amazon’s new head office development across the way. This strategic location, with its superior road infrastructure connecting to both northern and southern suburbs, has catalysed the area’s development into what we envision as an emerging Century City-calibre node.

Infrastructure that powers performance

Leading sustainable office parks are distinguished by infrastructure investments that address both environmental impact and operational resilience:

  • Renewable energy systems: Black River’s solar fleet, with an installed capacity of 1,496 kWp supported by 5,715 panels, significantly reduces grid dependence while ensuring consistent power supply.
  • Backup power solutions: A comprehensive backup generator system, coupled with a centralised power plant, ensures business continuity during grid interruptions – a critical feature that’s no longer optional but essential for tenant operations.
  • Water security measures: Strategic use of borehole water for refuse yards and irrigation supports water-wise landscaping, reducing municipal water dependence while maintaining attractive green spaces.

These investments deliver measurable returns through reduced operating costs and enhanced tenant satisfaction. The park’s near-full occupancy demonstrates the strong market demand for sustainable, resilient office space.

The multi-tenant advantage: How diversity drives growth

Sustainability extends beyond utility management to encompass how spaces support diverse business needs. Black River Office Park comprises 14 distinct buildings, each with its own identity, enabling a unique ecosystem where corporate offices and business process outsourcing (BPO) operations successfully coexist. As we’ve discovered, sustainable office parks must be flexible enough to accommodate varying density requirements while maintaining premium-grade standards.

The park’s design thoughtfully incorporates energy-efficient building systems alongside carefully planned green spaces that enhance both environmental performance and user well-being. Supporting amenities promote tenant productivity and satisfaction, while flexible spaces readily adapt to changing business needs.

This approach has attracted a diverse tenant mix, including boutique gyms, award-winning salons, medical practices, and varied food offerings. As a result, it has created a vibrant, community-centric environment that supports approximately 2,000 employees, a number set to double with recent expansions.

Collaboration: The key to sustainable success is collaboration

Achieving meaningful sustainability requires close collaboration among REITs, tenants and vendors. At Black River, this collaborative approach begins with our tenants, working closely with them to optimise space utilisation and resource efficiency. We engage suppliers in sustainable procurement practices while maintaining strong partnerships with the City of Cape Town and CapeBPO to align with regional development goals. Our Red Thread initiative exemplifies this collaborative spirit, repurposing materials from gutted buildings to benefit the community and demonstrate our commitment to circular economy principles.

Smart design, smarter returns

Modern technology plays a crucial role in maximising sustainable infrastructure performance. At Black River, we’re investing in smart building systems for resource optimisation, complemented by advanced monitoring tools for energy and water consumption. Our commitment to continuous assessment of environmental performance drives strategic upgrades that maintain our premium-grade status.

The planned redevelopment of Gate House, which anchors the entry point to Black River Park, illustrates our commitment to ongoing evolution. This project will enhance the building’s exterior while maintaining its distinct character, demonstrating how sustainable design can complement heritage features.

Market leadership through environmental excellence

As South Africa continues to face environmental and infrastructure challenges, sustainable office parks will play an increasingly vital role in our business landscape. The success of Black River Office Park demonstrates that sustainability isn’t just about environmental responsibility; it’s about creating resilient, future-ready spaces that deliver lasting value for all stakeholders.

Property owners and managers must take a long-term view, balancing immediate operational needs with future sustainability requirements. This means investing in robust infrastructure, fostering collaborative ecosystems, and maintaining unwavering commitment to continuous improvement.

The future belongs to office parks that can adapt, evolve and thrive in the face of change. Embracing sustainable practices today not only protects our environment but also ensures the long-term viability of our assets. At the same time, it creates spaces where businesses can flourish for generations to come.

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