In an ambitious project that would take about over two years to complete at a cost of over ZAR 4.5 billion (USD 255 million), the Victoria and Alfred Waterfront, an iconic landmark of Cape Town in South Africa is set to undergo a total face-lift.

The project would be focussed on developing new five-star hotels as well as leisure, residential and retail space. This was announced by Norbert Sasse, Group Chief Executive Officer, Growthpoint Properties, at the media presentation of the financial results of the leading real estate firm of South Africa.

Sasse said that both Growthpoint and the Public Investment Corporation (PIC), a government-owned entity, would fund the ZAR 4.5 billion current development pipeline, and that approximately ZAR 2 billion of this investment will be directed towards two internationally branded hotels at the V&A Waterfront. This includes a ZAR 1 bn transformation of the iconic Table Bay Hotel into an InterContinental Hotels Group (IHG) property.

Sasse said that 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,” says Haitham Mattar, Managing Director, India, Middle East & Africa, IHG Hotels & Resorts.

Scheduled for opening in 2025, InterContinental Table Bay Cape Town aims to enhance the property’s legacy while ushering in a new era of luxury hospitality in the region. The hotel will be managed by Sun International under a hotel management agreement, Mattar adds.

At the media conference, 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 June 30, 2024 financial year, with superb performance from the V&A Waterfront,” he said.

Sasse cautioned, however, that the strong operational performance has been overshadowed by the negative impact of higher interest rates, lower dividends from Globalworth Real Estate Investments (GWI) and reduced profit from the South African trading and development division, leaving distributable income down 10 pc in line with guidance provided to the market.

Meanwhile, in spite of these factors, he noted that post-election, there is a more bullish feeling overall. Sasse noted that over and above its planned ZAR 4.5 billion investment in the V&A Waterfront, both Growthpoint and the Public Investment Corporation (PIC) plan to invest approximately ZAR 700 million in a new residential development at the mixed-use precinct.

Estienne de Klerk, Managing Director, Growthpoint Properties, said that future expansion plans around Granger Bay, valued at approximately ZAR 20 billion, are in the planning stages. He maintained moreover that these plans depend on the V&A Waterfront obtaining additional development rights for about 440,000 sqm from the City of Cape Town.