42256 - Growthpoint Properties Limited

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

42256

Company Name

GROWTHPOINT PROPERTIES LTD

Date SPI Disclosed

Mar 31, 2020

Country

South Africa

Region

Africa

Projected Board Date

Mar 23, 2020

Environmental Category

B - Limited

Status

Active

Last Updated Date

Sep 1, 2021

Department

Regional Industry - MAS Africa

Industry

Tourism, Retail and Property

Previous Events

Approved : Mar 23, 2020
Signed : Mar 31, 2020
Invested : Aug 30, 2021

Sector

other

Project Description

The proposed IFC investment is a ZAR1.2 billion (US$80 million) equity and convertible debt package to finance the development and acquisition of properties for Growthpoint Healthcare Property Holdings Ltd (“GHPH”), South Africa’s first healthcare Real Estate Investment Trust (REIT). Established in 2016, GHPH was founded by Growthpoint Properties Limited (Growthpoint or the Sponsor), South Africa’s largest REIT. GHPH is an unlisted REIT specialized in building a portfolio of income producing healthcare property assets in South Africa and these include hospitals, clinics, diagnostics centers, laboratories and other healthcare related real estate.

GHPH will build its portfolio through: (a) acquiring existing properties; and (b) developing new properties (new developments will comprise up to 30% of GHPH’s target portfolio). GHPH already holds five assets with the aggregate value of ZAR2.5 billion (US$174 million), four of which are hospitals and one a medical chamber – small office suites for doctors. Growthpoint is developing a fifth hospital for GHPH called Pretoria Head and Neck hospital, a specialized hospital focused on the head and neck, spinal and vascular surgery. It is expected to be completed in 2020. Concurrently, GHPH is pursuing a pipeline of additional investment opportunities and expects to grow to ZAR5 billion worth of assets over the next three years. The proposed IFC financing package is to support GHPH’s growth plans.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.0
Equity	20.0

Development Impact

The expected project-level outcome is increased availability of high-quality healthcare services through increased access to finance for hospital providers in South Africa. Beyond the Project, IFC anticipates that the investment will increase competitiveness of the private healthcare sector by removing barriers to entry for new operators via the introduction of new asset class.

IFC will provide scarce equity and quasi-equity financing to an unlisted healthcare REIT that otherwise is not readily available in the local market. IFC's investment will support GHPH's ongoing capital raise and play a catalytic role by sending a strong signal to the investment community affirming the viability of the new healthcare asset class in South Africa. IFC's participation in the healthcare REIT could be important for the success of the planned listing of GHPH on the Johannesburg Stock Exchange. Furthermore, IFC will provide advice of how GHPH can reach higher green building standard.

E&S Category Rationale / Risks and Mitigation

This is a Category B project, according to IFC’s Environmental and Social Sustainability Policy. Based on information reviewed during the appraisal, it is expected to have limited adverse environmental and social risks and impacts that are few in number, short-term and site-specific, and can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the sections further below.

The key environmental and social (E&S) issues identified include; (i) the adequacy and implementation of the Growthpoint’s Environmental and Social Management System (ESMS); (ii) availability and adequacy of the existing E&S risk assessment procedures to appraise the entire scope of business risks; (iii) availability and adequacy of relevant E&S management plans and procedures to effectively manage the entire scope of business risks; (iv) adequacy of the E&S management staff capacity to oversee key risks in the business; (v) adequacy of the human resources policy, and it’s implementation, to address risks related to labor and working conditions for direct and contracted workers; (vi) adequacy of the life and fire safety measures at the Pretoria Head and Neck Hospital, and other operational public buildings managed by Growthpoint on behalf of GHPH; (vii) waste and wastewater management practices at the buildings managed by Growthpoint; (viii) armed security management; (ix) stakeholder (internal and external) engagement process.

Contacts

For Inquiries About the Project, Contact

Growthpoint Healthcare Property Holding Ltd.
Linda Sigaba
CEO
+27 11 944 6531
lsigaba@growthpoint.co.za
The Place, 1 Sandton Drive, Sandton, Gauteng, 2196
www.growthpoint.co.za

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

Growthpoint Properties Ltd, The Place, 1 Sandton Drive, Sandton, Gauteng, 2196.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

Governance Risk Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Disclaimer