February 22 2025 13:45
Growthpoint Properties (JSE: GRT) has delivered a multi-year, multi-million-Rand revitalisation of the Longkloof precinct.
The precinct redevelopment was curated by Growthpoint, South Africa’s largest real estate investment trust (Reit), in a heritage-led project to inject new life into the Longkloof Precinct. The project involved the renovation of several Growthpoint-owned buildings and the creation of a public square at their heart, which connects to the city via four different access routes.
“Growthpoint’s vision was to reimagine six buildings made up of a historical school and an industrial building with its boiler room and a vacant parking lot as a hip and vibrant mixed-use precinct that embodies Cape Town’s essence in something new and exciting, yet respectful of its heritage,” said Wouter de Vos, Growthpoint’s regional head for the Western Cape.
This flagship precinct exemplifies Growthpoint’s commitment to enhancing the city’s built environmentthrough urban renewal with quality assets. Its low vacancy rate, below 2%, reflects its desirability in Cape Town’s real estate market.
Work on the precinct began in 2019 after several years of planning and most elements were completed by 2021. The 21,164 square metre multi-use property has become a desirable address for innovative, creative and entrepreneurial businesses, said de Vos. Office tenants include Travelstart, Mushroom Media and Workshop17. Longkloof is also the fifth Cape Town location of WorkAgility, Growthpoint’s ready-to-occupy office concept, which eliminates traditional office costs and complexity and can be secured for periods as short as one year.
The final hospitality and retail elements were planned to open in 2021 but were delayed by the Covid-19 lockdowns and the subsequent period of global and local uncertainty, and now complete and are coming to life around the precinct.
“Five years after the start of the pandemic, the resilience of the Cape Town market is undeniable, with an upswing in international tourism since mid-2023, together with ongoing ‘semigration’ from other parts of South Africa to the Western Cape,” said de Vos.
The 154-room Canopy by Hilton Cape Town Longkloof Hotel is the first of its kind in Africa and incorporates the façade of the former MLT House, the structure of which has been preserved and integrated into the new design. The hotel entrance leads from Longkloof’s public open square, Longkloof Square, with newly curated retail and social spaces that enhance the precinct’s connectivity and community focus.
De Vos said the hotel is the “perfect complement to the mix of uses and tenancies in the Longkloof precinct”.
The Canopy by Hilton Cape Town Longkloof hotel blends upscale comfort with the charm of Cape Town’s rich cultural tapestry, featuring custom art pieces that reflect the neighbourhood’s creative spirit, articulated in a Cape Malay colour palette, and inspired by fynbos, the ocean and nearby Bo-Kaap on different floors, said de Vos.
Andreas Lackner, Vice President Operations, Africa & Indian Ocean, Hilton, said: “We are delighted to start welcoming guests to the much-anticipated Canopy by Hilton Cape Town Longkloof and are proud to be the centrepiece of the iconic precinct. We congratulate our partners at Growthpoint for completing the development of Longkloof, revitalising the historic precinct with this world-class hotel, an attractive public square and more. The neighbourhood is set to be a destination in its own right, and we are pleased to be at the heart of it.”
The retail is on ground level fronting Park Road, extending into Summit Lane and spilling into the square. Each shopfront expresses the identity of its occupant through a mix of timber finishes and different window choices, adding to the charm of the precinct’s distinctive red-brick facades and quirky industrial interiors.
Not all developments can be done with this degree of time and patience, but a heritage-focused project of this nature is an exception. “There is certain value in more difficult developments,” said Neil Schloss, Growthpoint’s Head of Asset Management SA. “The fact that they are hard to do, and there are few property investors who have the capacity to take them on, gives them scarcity and, given the right project, this creates greater value,” he said.
“We are extremely pleased with what has been achieved with the redevelopment of the historic Longkloof precinct and we fully believe that it enhances its surrounds and the city, as well as the Growthpoint portfolio of property assets,” he said. “This is a new gem to be discovered in Cape Town and aligns perfectly with Growthpoint’s strategy of creating assets that have value and growing relevance into the future,” he said.
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