Growthpoint Rebalances its South African Portfolio

 

By Fred Felton | Feb. 11, 2026

Growthpoint Properties (JSE: GRT) has successfully rebalanced its SA portfolio with two property deals that reduce its exposure to Gauteng and unlock around R2bn in capital to go into its strategy to target higher-performing regions and sectors.

One of the Growthpoint properties 29 Richefond Circle in Umhlanga which features a roof-top garden.  Photo: Fred Felton

Two transactions have been agreed between Discovery and the current co-owners of the Discovery buildings at Sandton Summit, Growthpoint and Truzen 114 Trust, which hold 55% and 45% respectively.

For the bigger transaction, Growthpoint will sell its stake in the Discovery head office, or Discovery Phase 1, to Discovery in a cash transaction with proceeds of R2.3bn. Growthpoint’s 55% stake in the building equals to 50,466m², which was valued at R2.2bn at the end of Growthpoint’s most recent financial reporting period, 30 June 2025. Truzen will sell its 45% stake to Discovery.

Growthpoint is also acquiring Truzen’s 45% stake in the adjacent Discovery Phase 2 at an attractive, market-aligned consideration of R323 million. The 19,369m² multi-tenant building was fully let on 30 June 2025.

Once these transactions are finalised, subject to conditions including approval from the Competition Commission, each building will be 100% owned by its respective owner – Discovery will wholly own Discovery Phase One and Growthpoint will be the sole owners of Discovery Phase 2 – on a sectional title basis.

Growthpoint’s domestic strategy is to increase portfolio weighting towards sectors and regions expected to delivery better growth over the longer term, specifically retail and logistics properties.

Estienne de Klerk, SA CEO of Growthpoint Properties. Photo: Supplied. 

One only has to look at its property portfolio in KwaZulu-Natal to see the wide range of premium properties that it has which include: Lincoln on the Lake, Mayfair on the Lake, The Boulevard, Gateway Hospital, Ridgeview, La Lucia Mall, Westville Mall and even Student Accommodation at UKZN like Hluma Studios – UKZN – Howard College Campus which is scheduled for opening in 2027. Growthpoint also has properties in Hillcrest area like Busamed – Hillcrest Private Hospital, Hillcrest Corner, Watercrest Mall and Trade Park in Mount Edgecombe and more developments being built in the Cornubia area.

‘’Effective capital rotation is a balancing act. We continually review the portfolio to identify where it makes sense to reduce overweight positions and sell assets attracting investor demand to fund our strategy and add value. In this case, the Discovery Head Office was identified for disposal despite its P-grade quality and blue-chip tenant,’’ noted Estienne de Klerk, SA CEO of Growthpoint Properties.

These combined transactions reduce Growthpoint’s office concentration in Gauteng and Sandton by more than 30, 000m² to a more appropriate level, realise value and unlock almost R2bn which can be used for further strategic asset rotation. This enables Growthpoint to manage its portfolio weighting responsibly while keeping overall portfolio quality.

With 100% ownership of the P-Grade Discovery Phase 2, Growthpoint increases its exposure to potential upside from shorter-lease, multitenant offices in a market where rental conditions are firming. Multitenant offices also offer more diversified income and less letting risk.

Growthpoint will continue its long-standing relationship with Discovery as a tenant at Discovery Phase 2 and elsewhere.

‘’These transactions are a vote of confidence in Sandton, its office market and its blue-chip tenants, all of which Growthpoint will continue to invest in at suitable levels. Discovery Phase One has attracted a significant investment from Discovery. With our 100% investment in Discovery Phase Two, Growthpoint retains an appropriate presence in the Sandton Summit precinct, where we are also due to break ground on the R1.2 billion Olympus Sandton residential development with Tricolt later this month,’’ noted de Klerk.

The financial effects of the transaction will be reported in the results for Growthpoint’s six months ended 31 December 2025, which will be published on Wednesday, 11 March 2026. The transaction will have no impact on these interim results. The transactions are expected to have little, if any, effects during Growthpoint’s financial year to 30 June 2026.

According to Growthpoint once final, the transaction will result in a higher reported office vacancy percentage, as a large, fully let asset is removed from its portfolio.

Catalytic Projects to boost the City's economy

 

EThekwini Municipality has numerous catalytic projects underway which will transform the City and boost the local economy, writes Sohana Singh

There are several catalytic projects underway in the City while others are still in the planning stages. The City’s Catalytic Project Unit is currently working on around 16 projects which will bring approximately R217 billion in investment and create in the region of 300 000 jobs. The partnership between the private sector and government is evident in the investment that is taking place, boosting confidence in the region.

Below is a breakdown of a few of these projects that are transforming the City.

Shongweni Development

The development of the R3 billion Westown Square by Fundamentum Development Company began in 2021 and kickstarted a new era for the outer west region of eThekwini. This is the first 100-hectare precinct of the Shongweni area to be developed, out of a 2 000-hectare integrated mixed-use urban development located along the N3 and Kassier Road interchange. It will comprise of nine precincts which includes retail, residential, commercial, logistics, industrial, and business park precincts. Westown Square is expected to open for business by April 2025.

Brickworks

The Avoca Node Development by JT Ross and Investec is a 15-year programme consisting of three precincts; Brickworks, North Fields, and Caneridge measuring approximately 350 hectares in extent. It has the potential capital investment of over R10.5 billion. 

The City has invested R451 million for infrastructure upgrades which are currently underway on Old North Coast Road to improve access to the area and the increase in traffic.

The City is expecting R206 million annual rates at full development of this light industrial area. There are 51 000 construction jobs, and 19 000 permanent jobs expected to be created.

Giba Business Estate

The Giba Business Estate development by Sultex Holdings PTY Ltd is situated south of the Marianhill Toll Plaza along the N3 freight and logistics corridor from Durban-Free State- Gauteng known as SIP2. 

The R1.9 billion project will develop 200 000 square meters of platformed sites of various sizes which are aimed for sale to the light industrial, warehousing, and logistics sectors.

Phase 1 of the construction consists of 22 platforms and engineering services which commenced in July 2023. Phase 2 will include the construction of top structures.

Regarding jobs created, 492 construction and 4 661 permanent jobs are expected to be created with local community members benefiting from the  development.

Oceans Development

The R5 billion Oceans uMhlanga development is planned to be a mixed-use lifestyle development within the uMhlanga Rocks Village node. This includes a high-end shopping mall, residential apartments, and the Radisson Blu Hotel. The shopping mall and hotel are complete; however, construction is currently underway for residential apartments and a time share hotel. This development is expected to enhance the tourism offering value within the node. Further investment into transport facilities in the area is being discussed.

Inyaninga

Inyaninga is a proposed major multi-modal logistics hub worth R40 billion. The total land area is 1 023 ha for which is a planned total commercial/logistics bulk of approximately 1.617 million square meters, plus some 8 755 residential opportunities.

Inyaninga has been identified as a possible site location for a large scale manufacturing plant. The iNyaninga site offers numerous advantages for such a development, with close proximity to the airport and major transport routes to the port via the R102 and N2 to facilitate access to market.

Sibaya Coastal Precinct. 

Further development being planned or currently being undertaken include Cornubia, the Dube Trade Port, Sibaya Coastal Precinct, Inyaninga, Whetstone Business Park, and in the Durban CBD worth billions of rand.