Founded in 1987, Growthpoint Properties Ltd. (Growthpoint) is South Africa’s largest REIT, listed on the JSE with a market capitalization of US$2.6 billion (ZAR42.4 billion) as of June 30, 2022. Growthpoint owns and manages a diversified property portfolio valued at US$9.9 billion (ZAR160.8 billion) as of June 30 2022. The portfolio is also diversified across geography and sub-sectors, that is retail, office and industrial properties. Growthpoint’s portfolio comprised of the following:

a)      South Africa: (i) 408 directly owned properties in South Africa; (ii) a 50.0 percent interest in the V&A Waterfront, an iconic mixed-use development in Cape Town, South Africa; and (iii) a majority stake interest in Growthpoint Healthcare Property Holdings Ltd (“GHPH”), South Africa’s first healthcare Real Estate Investment Trust (REIT); (iv) 16.6 percent interest in Growthpoint Student Accommodation Holdings, which owns 7 student accommodation properties and 2 properties under development.

b)     Australia: a 62.2 percent interest in Growthpoint Properties Australia Limited, which owns 58 properties and is listed at the Australia Stock Exchange.

c)      Eastern Europe: a 29.4 percent interest in Globalworth Real Estate Investment Limited, which owns 71 properties in Poland and Romania.

d)     United Kingdom: a 60.8 percent interest in Capital & Regional Plc, which owns 6 properties

e)      Sub-Saharan Africa (ex-South Africa): a 16.3 percent interest in Lango Real Estate Limited (formerly Growthpoint Investec African Properties Fund), which owns 8 properties and 3 plots of land.

Growthpoint’s shareholding is diversified, with entities with more than a 5 percent stake accounting for less than a 20 percent combined stake.

On December 13, 2022, IFC invested ZAR1.0 billion (about US$54.5 million) as a sole investor in a privately issued green bond by Growthpoint. The green bond issuances were done under Growthpoint’s existing ZAR30 billion (US$1.76 billion equivalent) Domestic Medium-Term Note (DMTN) program which is registered at the Johannesburg Stock Exchange. IFC investment was into unsecured floating rate notes with 7- and 10-year tenors that will be listed on the Johannesburg Stock Exchange (JSE).

The Project will focus on properties located in South Africa.

No governance risks to development impact were noted. Growthpoint has incorporated sustainability targets for the Board and management, and has developed a forward-looking environmental, social, and governance strategy.