By Suren Naidoo.
Cape Town’s V&A Waterfront is in line for billions of rand in new development and upgrades over the next decade, largely in the form of new five-star hotels, leisure, residential, and retail space.
Group CEO of Growthpoint Properties Norbert Sasse said at a financial results media presentation in Sandton on Wednesday that up to R4.5 billion will be invested in the iconic mixed-used property precinct over the next two years.
Around R2 billion of this will go into two internationally branded hotels at the waterfront, one of which is the R1 billion overhaul of the landmark Table Bay Hotel into an InterContinental Hotels Group (IHG) property.
He revealed that another R1 billion will go into a new Marriott Hotels property, which is already under development. It will operate as a five-star establishment under Marriott’s edition brand.
Sasse said international hotel brands have been desperate to get into the V&A Waterfront, with the likes of Hilton Hotels also expressing interest. This comes in the wake of the strong recovery of the tourism industry in Cape Town, with international arrivals booming.
The trophy property has delivered double-digit growth for FY2024.
“Altogether there are around 20 projects related to the current overall R4.5 billion investment, but the two hotels and R700 million residential project make up the bulk of the figure … As part of upgrades and expansion of the retail mall at the V&A Waterfront, we are also increasing retail space by a further 3 000m2,” he added.
De Klerk pointed out that the expansion of the mall will be to create a fully-fledged international luxury brands wing in the area of the centre where Mugg & Bean and the Baia seafood restaurant are located. This is on the side where the Cape Wheel has also been relocated, which overlooks part of Granger Bay.
“The V&A expects mid-single-digit growth next year as it undertakes major upgrades,” flagged Sasse.
“The extensive refurbishment of Table Bay Hotel will begin in February 2025, and it will relaunch as the InterContinental Table Bay Cape Town later in the year.
“The conversion and extension of an existing wing of the mall for international luxury brands [that] is set to open in November 2025 has commenced, so normal trading in this area has paused for the project, “he said.