SOUTH AFRICA – The V&A Waterfront, owned by Growthpoint Properties and the Government Employees Pension Fund, is set to invest ZAR4.5 billion (US$253.46m) for redevelopment over the next decade.
The ambitious project will focus on developing five-star hotels, leisure facilities, residential spaces, and retail areas.
Growthpoint Properties’ CEO, Norbert Sasse, announced the plans during the firm’s financial results presentation in Sandton.
Sasse said that the funds will be invested in the iconic mixed-use precinct over the next two years and that the focus will be on five-star hotels, leisure-, residential-, and retail space.
Sasse highlighted that Growthpoint and PIC’s substantial funding in both current and new developments, despite recent operational challenges and the impact of higher interest rates, reflects a positive shift in investment sentiment and future property-sector growth.
“Growthpoint Properties Limited achieved robust operational results across its local and international investments for the 30 June 2024 financial year, with superb performance from the V&A Waterfront,” he said.
Approximately ZAR2 billion (US$112.65m) of this investment will be directed towards two internationally branded hotels at the V&A Waterfront.
This includes a ZAR1 billion (US$ 56.32m) transformation of the iconic Table Bay Hotel into an InterContinental Hotels Group (IHG) property.
The revamped InterContinental Table Bay Cape Town, set to open in 2025, will boast 306 rooms with spectacular views, a new pool bar, spa, and upgraded facilities. Sun International will manage the hotel under a management agreement.
The hotel will offer 306 rooms, including 45 newly designed guest suites, all boasting spectacular views of the harbour, Table Mountain, and the Atlantic Ocean.
It will also introduce a new elevated pool bar and terrace, a signature spa, and an Intercontinental Executive Loyalty Club Floor and Lounge. Additionally, all reception areas and restaurants will be revamped.
“With its rich history, scenic location, and a legacy of excellence, this iconic property perfectly embodies the essence of the InterContinental brand, and we are excited to work with V&A Waterfront and Sun International on maintaining its legacy,” Haitham Mattar, managing director, India, Middle East & Africa, IHG Hotels & Resorts, said.
Despite recent operational challenges and higher interest rates, Sasse expressed optimism about the investment, citing a positive shift in sentiment and future growth in the property sector.
He also revealed plans for a £28 million (US$36.74m) residential development and potential future expansion around Granger Bay, pending additional development rights from the City of Cape Town.
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