December 12 2024 17:15
SA’s largest landlord Growthpoint Properties appeared to have taken its foot off of developments in Gauteng as it found the Western Cape had better priced opportunities until it surprised many with the announcement of The Olympus Sandton a few days ago.
The company’s SA CEO, Estienne de Klerk told Property Flash on a Cape Town tour that the bulk of the group’s work was in the Cape. He said the Sandton-based company which owns numerous buildings in that node which has long been considered the richest commercial area in South Africa, would of course still look for opportunities in Johannesburg but they looked costly currently and infrastructure and municipal service delivery were a concern.
Then suddenly Growthpoint and developer Tricolt announced a new mixed-use project with a focus on residential assets. It’s worth R2bn and is called The Olympus Sandton. That implies that Growthpoint is investing R1bn into this joint venture. That’s solid money for Growthpoint even if it’s still dwarfed by the multi-billions being spent in the Cape. That’s the thing, despite Cape Town’s marketing campaign as the city to be in in South Africa, Johannesburg remains the commercial centre of South Africa. This is even though the city is being ruined by failing infrastructure and incompetent public officials. Johannesburg’s service delivery will worsen in 2025 but Sandton will probably be OK given its support from big business and companies like Growthpoint, a real estate investment trust with assets worth R175bn and spread across SA, Romania, Poland and Australia.
It’s interesting that Growthpoint is investing in a residential property, albeit with a partner as this section of real estate hasn’t been its typical play since it listed more than two decades ago.
Interior rendering
Olympus Sandton will be situated in the mixed-use Sandton Summit precinct, anchored by the Discovery Head Office on the corner of Rivonia Road, where Katherine Street becomes Sandton Drive. This strategic investment aligns with Growthpoint’s vision to create South Africa’s premier walkable mixed-use precinct, capitalising on Sandton’s status as Africa’s leading financial district, Growthpoint said. The name is said to link to Mount Olympus where the ancient Greeks lived. It has no ties to South Africa.
Growthpoint has been rolling out different elements of the Sandton Summit vision for over a decade now, and Olympus Sandton is its first development positioned to capture the increased demand for residential property in Sandton Central, the group said.
The R2bn-plus Olympus Sandton development will comprise two towers. The first residential tower of 26 storeys will be the first phase of the development along Rivonia Road. It will include a premium dining experience from Marble Hospitality Group on one of the tower’s upper floors, as well as its extraordinary Pantry convenience retail offering in Grade-A ground floor retail space. The second phase is a tower of at least 16 storeys, located east of the first.
The sale of the development’s more than 400 residential apartments by Tricolt has commenced and will launch to the public on February 27 2025, with prices starting from R1.49m. Growthpoint and Tricolt will retain ownership of the two retail sections of the tower. Construction of Olympus Sandton is estimated to start in the latter half of 2025.
Sandton Summit is situated at the crest of Sandton Ridge, which is the highpoint of the area. Olympus Sandton’s 26-storey tower, although not the tallest building in the area, will become the highest in Sandton, offering unmatched views across Johannesburg.
Neil Schloss, Head of Asset Management South Africa at Growthpoint Properties, said: “We believe that commencing the Olympus Sandton development is well-timed for the reawakening of the powerhouse that is Sandton Central, and aligned with its accelerated transformation into a vibrant neighbourhood as it evolves with the trend of people wanting to live closer to workplaces and amenities, to offer an exceptional mix of residential, office, retail and other types of properties.”
Timothy Irvine, Growthpoint’s Head of Asset Management for Offices, said Sandton was experiencing a significant revival.
“After years of office downsizing, companies are now maintaining their physical presence and even starting to grow it again as return-to-office becomes standard practice. Vacancy rates in Growthpoint’s office portfolio are declining nationwide, with Sandton, the country’s cosmopolitan business capital showing the start of a particularly promising recovery. Despite a slow initial post-pandemic resurgence, the district is adapting not only its office spaces to meet growing demand but its entire lifestyle, with more living and gathering spaces,” he said.
Growthpoint recently sold its 151 on 5th building in Sandton to a residential developer. Growthpoint is investing in taking Sandton into a new green era with its revolutionary e-co2 solution launching at 10 Sandton office buildings in mid-2025. The e-co2 scheme will provide tenants with access to wheeled renewable hydro, wind and solar electricity at fixed escalations, sharing the benefits of Growthpoint’s milestone Power Purchase Agreement (PPA) for renewable energy, with which it secured 195GWh of green power.
This is one of several projects Growthpoint is undertaking that will make Sandton Central even more friendly for people, businesses and the environment, it said.
Olympus Sandton’s design was created through collaboration between Australian architectural practice ClarkeHopkinsClarke (CHC) and dhk Architects, and will be developed jointly by Growthpoint and Tricolt.
The design of Olympus Sandton incorporates advanced sustainable building practices, including post-tension slabs and smart energy management systems, aligning with Growthpoint’s environmental, social and governance (ESG) commitments, including its 2050 carbon-neutral goal, Growthpoint said. The Olympus Sandton development will target at least a 4-Star Green Star rating from the Green Building Council of South Africa (GBCSA).
“Pedestrianised mixed-use precincts have tremendous environmental benefits, particularly when they are so well located, by reducing carbon emissions as a result of less private vehicle travel and traffic. Olympus Sandton is the next step in bringing our vision for Sandton Summit to life and delivers on our commitment to creating sustainable developments that deliver exceptional amenities for their uses and long-term value for our stakeholders,” said Schloss.
Property Flash far prefers the Olympus’ design to The Leonardo, one of the eyesores of the Johannesburg skyline.
alistair@propertyflash.co.za
