Cape Town Waterfront Sold to Growthpoint and PIC

February 25 - South African's most popular tourist destination, the V&A Waterfront in Cape Town has been sold to Growthpoint Properties and the Public Investment Corporation (PIC) for R9.7 billion.

This is considered the biggest single property transaction in South African history.

The two groups confirmed this week that they had entered into a joint venture to acquire the Waterfront, which they will own on a 50-50 basis.

In 2006, Transnet sold the Waterfront to an Emirati investment group and black economic empowerment investors for R7 billion.

At the time, Growthpoint was very keen to get into the deal, but its attempts proved to be unsuccessful.

According to the Chief Executive of the group, Norbert Sasse: "To get another bite of the cherry and to be successful is very exciting for us."

PIC, which represents many state pensioners, said that owning a property that attracts 21 million visitors a year would be hugely beneficial to investors in the group.

There is are still over 220,000m2 of property that has development approval - around 36% of the area.

Growthpoint said that despite the massive sum of money required to be paid out, it was actually happy with the sale price.

The property features Sol Kerzner's One & Only Hotel, retail stores on street level and a breakwater parking garage - features that were not part of the Waterfront when it was sold in 2006.

There is also a sense of satisfaction that the Waterfront was back in the hand of South Africans.

2/25/2011 9:42:55 AM