Growthpoint Properties transforms Sandton's market with R2.3 billion sale to Discovery

In a morning of rapid-fire corporate manoeuvres, Growthpoint Properties has redefined its presence in Africa’s richest square mile.

The REIT confirmed today that it has sold its 55% undivided share (50,466 m2) of the main Discovery Phase 1 building to Discovery Propco for R2.317 billion.

The deal, described by incoming Group CEO Estienne de Klerk as active asset management to strategically recycle capital.

Rather than sitting on the capital, De Klerk confirmed the funds are already being recycled into a diversifying portfolio, emphasising that this liquidity supports a "continual and active process" of investment in specific nodes and geographies across the country.

GrowthPoint still has assets across Sandton, although it is reducing its exposure to the Sandton office market. To this end and keeping a footprint in the precinct, it has fully acquired the 19,300 m2 Phase 2 building, situated directly behind the main tower.

Growthpoint has bought the remaining 45% stake from Zenprop to take 100% ownership of this multi-let asset.

Neil Schloss, head of asset management at Growthpoint SA, highlighted the asset as “an opportunity within our own precinct to diversify risk with a multi-tenanted asset and a potential upside of rental growth going forward.

"We will now own 100% of Phase 2,” Schloss said.

By offloading the massive Phase 1, a "trophy" asset but a single-tenant risk, Growthpoint has freed up nearly R2 billion in net proceeds to fund its other investment opportunities across the industrial, retail, office and development sectors.

This is in all three main regions in the country, but with an emphasis on the Western Cape.

Olympus: The R1.2bn 'Button' has been pressed

Just across the road from Discovery, the Olympus Sandton residential development is proving that the "live-work-play" dream is a financial reality.

Schloss confirmed that the project, developed with GrowthPoint partners, Tricolt, reached its pre-sale targets faster than anticipated, allowing construction to begin in December 2025.

The Olympus breakdown:

• Completion: Targeted for January 2028.
• Density: over 500 units across a premier twin-tower design.
• The Product: Units range from about 36 m2 studios starting at R1.5 million to luxury penthouses priced at R45 million.
• The "Marble" Factor: The development features world-class amenities, including Marble Restaurant on an upper floor and The Pantry on the ground level.

Schloss said: "Reaching that pre-sales target proves value in the precinct, product and location.”