Investor Pocket

Growthpoint Properties Investment Proposition

An international property company with assets in South Africa, Eastern Europe, Australia and the UK, Growthpoint Properties is the largest South African primary REIT (Real Estate Investment Trust) listed on the JSE and a 50% stakeholder in the V&A Waterfront in Cape Town. With an increasing number of assets offshore, we own and manage a diversified portfolio of over 500 property assets, locally and internationally. Growthpoint has operated as a REIT from 1 July 2013. A tax regime that provides “flow-through” on a pre-tax basis of the net property income to investors in the form of a taxable dividend, REITs are the most prevalent structure for investment in property in international jurisdictions. As investment in listed property continues to globalise, the REIT structure has become a recognised international standard. Growthpoint is included in the JSE Top 40 Index with a market capitalisation of R52.7bn and an average of R3.1bn worth of shares traded per month, as of 31December 2021. 

Our investment proposition at a glance:

  • The largest South African, primary JSE listed REIT​​​
  • ​​Diversified across international geographies, sectors and income streams
  • Quality of earnings, underpinned by high-quality physical property assets
  • Largest portfolio of internally managed properties in South Africa
  • Fast growing funds management business
  • Experienced in-house development capability
  • Uninterrupted track record of paying dividends
  • 38th largest company in the FTSE/JSE Top 40 Index
  • Gross market capitalisation R52.7bn (at R15.37 per share)
  • Liquid and tradeable with R3.1bn average value of shares traded per month
  • 12th year inclusion in FTSE/JSE Responsible Index
  • 5th year inclusion in the FTSE4Good Emerging Index
  • Largest portfolio of Green Star rated buildings in South Africa
  • Constituent of FTSE EPRA/NAREIT Emerging Index
  • Dynamic and proven management track record 
  • Best practice corporate governance
  • Transparent reporting
  • Level 1 B-BBEE contributor

South African Business

Growthpoint owns and manages a portfolio of 421 directly owned properties in South Africa. Valued at R70.1bn, it is spread across a broad range of sectors: 

International Business

Growthpoint has a 62.2% holding in Australian stock exchange–listed Growthpoint Properties Australia (GOZ), which owns 26 office properties and 31 industrial properties situated mainly on the Eastern seaboard of Australia, and a 60.8% interest in London Stock Exchange–listed Capital & Regional (C&R) which owns seven, needs-based retail assets in the United Kingdom.   

Growthpoint also has a 29.4% stake in London Stock Exchange (AIM) listed Globalworth Real Estate Investments (GWI), which own mainly office assets in Poland and Romania.   

 

Lango Real Estate Limited, managed by Lango Real Estate Management Limited, established by Growthpoint and Ninety One, was launched in 2018 and strategically timed to take advantage of a highly attractive entry-point into retail, office and industrial assets located in key cities on the African continent (excl. South Africa) offering strong growth prospects.

Our Timeline: The Growthpoint Story

  • 1987
    1987

    OCTOBER

    Incorporation as a public company.

     

    NOVEMBER

    Listing as public company under the “Financial –real estate” sector of the JSE –with 17 properties valued at R90.1m.

  • 2001
    2001

    AUGUST

    Growthpoint has a market capitalisation of R30m and assets worth R120m.

     

    SEPTEMBER

    Mine Pension Funds (MPF) reverse their listed property assets into Growthpoint for the total purchase of R1.5bn.

  • 2002
    2002

    OCTOBER

    Growthpoint acquires R650m worth of listed property stocks from MPF.

     

    MAY

    Growthpoint merges with Primegro Properties Limited (Primegro) by way of acquiring all Primegro’s assets to the value of R2.5bn.

  • 2005
    2005

    JUNE

    Acquisition of a portfolio of 48 office, industrial and retail properties and one hospital from Tresso Trading 119 (Pty) Ltd for a total of R1.16bn.

     

    AUGUST

    Growthpoint announces R900m BEE deal. Broad-based BEE consortium acquires 14,2% shareholding in a non-dilutive transaction.

     

    NOVEMBER

    First issue under R5bn CMBS programme.
    Growthpoint launches its R5bn securitisation programme with the largest issue to date in the property sector of R805m five-year notes.

  • 2006
    2006

    FEBRUARY

    Growthpoint announces another “first” for the property industry by securing a R500m seven-year loan facility from Old Mutual Specialised Finance making substantial savings in the interest rates.

     

    JUNE

    Acquisitions of a further 23 office, industrial and retail properties from Tresso for a total of R1.4bn. Acquisition of R2.4bn industrial property fund, Metboard Properties Limited.

     

    DECEMBER

    BEE Partner (Phatisma) acquires 22m Growthpoint linked units (R280m).

  • 2007

    JANUARY

    Acquisition of R3.4bn Paramount portfolio.

     

    JULY

    Growthpoint acquires property asset management and property administration business of IPG for R1.6bn.

  • 2008
    2008

    MAY

    Launch of enterprise development initiative – Property Point.

     

    JUNE

    Growthpoint acquires R3.4bn worth of properties during 2007/08 financial year, taking asset value to R27bn.

     

    NOVEMBER

    Inclusion in the EPRA/NA REIT Emerging Market Index. Inclusion in the MSCI Emerging Market Index.

     

    DECEMBER

    Inclusion in the JSE Top 40 Index.

  • 2009
    2009

    JANUARY

    Successful rights offer of R1.742bn.

     

    JULY

    Acquires 50.1% of Australian listed Orchard industrial property fund, now Growthpoint Properties Australia Limited (GOZ).

     

    SEPTEMBER

    Increase investment in GOZ to 76.2% with a total investment of R1.3bn.
    Inclusion in the JSE Socially Responsible Index.

  • 2013
    2013

    MAY

    General capital raising of R2.52bn from local and foreign investors.

     

    JULY

    Real Estate Investment Trust (REIT) status granted by the JSE (previously Property Loan Stock). Linked unit capital structure converted to pure equity.

  • 2014
    2014

    JANUARY

    Acquisition of 100% of the issued shares in Abseq Properties (Pty) Ltd, owning 17 properties for R360m.

     

    MARCH

    Acquisition of 100% of the issued shares in Tiber Property Group (Pty) Ltd, owning 38 properties.

     

    APRIL

    Acquisition, settled by issues of Growthpoint shares for an interest of 34.9% in Acucap Properties Limited and 31.5% in Sycom Property Fund.

  • 2017
    2017

    JUNE

    Growthpoint has a market capitalisation of R70.7bn and property assets worth R122.3bn. Establishment of R2.3bn Healthcare REIT, comprising of four hospitals and one medical suite. Maiden income earned for the trading and development for third parties.

     

    DECEMBER

    Additional EUR113.8m invested in GWI taking ownership up to 29%. GWI expansion into Poland with the acquisition of 71.7% of GPRE.

  • 2018
    2018

    MARCH

    Issue of USD425m five-year Eurobond which was immediately swapped into EUR351m at around 3.3%.

     

    APRIL

    USD212m of capital commitments secured for Growthpoint Investec Africa Properties (GIAP, recently renamed Lango).

     

    JUNE

    Acquires 21.6% of GPRE for EUR150m.

  • 2019
    2019

    APRIL

    Consolidation of GPRE into GWI and an additional EUR93m invested into GWI during 2019.

     

    DECEMBER

    Acquisition of USD500m of properties predominantly in Ghana, Nigeria and Zambia for GIAP (recently renamed Lango). Acquisition of 51.1% of UK based, Retail REIT, Capital & Regional for GBP150m.

  • 2020
    2020

    Growthpoint has a market capitalisation of R40.4bn and group property assets worth R166.7bn of which 40.8% is located offshore.

    R10bn of assets under management in Growthpoint’s multi-fund management business spread across Lango Real Estate Limited (Lango), formerly GIAP, and Growthpoint Healthcare Property Holdings (GHPH).

     

    DECEMBER

    R4.3bn equity raise to pro-actively strengthen the balance sheet as the business faces headwinds from the COVID-19 pandemic.

  • 2021

    MAY

    GHPH acquires 51% of the subsidiary that owns the R194m Busamed Paardevlei Hospital.

     

    AUGUST

    GHPH acquires the Cintocare Hospital for R516m.

     

    NOVEMBER

    R480m additional investment into Capital & Regional increasing our shareholding to 60.8%.
    Transaction concluded for a $80m equity and convertible debt package from the International Finance Corporation for GHPH.

     

    DECEMBER

    Establishment of R2bn purpose-built student accommodation fund – Growthpoint Student Accommodation Holdings (GSAH).

Major Shareholders

Holding >2% at HY22 % Holding Shares Held
Public Investment Corporation (SOC) Ltd
14.0
481 633 812
NinetyOne SA (Pty) Ltd
5.8
199 692 562
Sesfikile Capital (Pty) Ltd
5.4
186 278 165
Sanlam Investment Management (Pty) Ltd
4.8
164 665 785
The Vanguard Group Inc.
4.1
142 080 714
M&G Inv. Managers (Pty) Ltd
3.6
124 708 580
Meago Asset Managers (Pty) Ltd
3.5
120 624 089
Old Mutual Investment Group (South Africa) (Pty) Ltd
3.4
116 771 175
Coronation Fund Managers Limited
3.4
115 668 305
Blackrock Institutional Trust Company N.A.
3.2
110 124 442
STANLIB Asset Management Ltd
2.9
98 001 718
Catalyst Fund Managers (Pty) Ltd
2.0
70 234 150
Total Shareholding > 2%
56.1
1 930 483 497
Other
43.9
1 500 303 569
Total
100
3 430 787 066
Foreign shareholding: 26% of institutional ownership and 23% of total shares outstanding
major-shareholders
dividends

Dividend History

Dividend pay-out ratio decreased from 100% to 80% of distributable income from FY20 

Make an Enquiry

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Johannesburg:

The Place, 1 Sandton Drive, Sandton

011 944 6000

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Durban:

4th Floor, Lincoln on The Lake, 2 The High Street, Parkside, Umhlanga Ridge

031 584 5100

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Cape Town:

4th Floor, MontClare Place, Main Road, Claremont

021 673 8400