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Johannesburg - It seems only a question of time before a deal would be announced regarding the possible sale of the V&A Waterfront in Cape Town.
The property is the crown jewel of the country’s commercial property sector and a foremost tourist attraction.
Rumours have abounded since Friday, when it was reported that the property had apparently been picked up for R10bn by listed property giant Growthpoint Properties [JSE:GRT] and the Public Investment Corporation (PIC).
Growthpoint and the PIC have denied that a transaction has already been done, but the PIC – Growthpoint’s biggest shareholder – told Sake24 it would not deny that discussions were indeed being held with the owners of the V&A.
At the same time an informed Sake24 anonymous source confirmed that it was only a question of time before a deal would be announced.
On Friday Growthpoint chief executive Norbert Sasse said that no transaction had been effected between the owners of the V&A and Growthpoint, and the company distanced itself from a report in the weekly newspaper Mail & Guardian that had made the announcement.
PIC head of property investments Wayne van der Vent however confirmed that the corporation had for several months been holding discussions with the owners of the V&A about the possible acquisition.
But, he said, nothing was on the table yet.
He also said that Growth¬point and the PIC had held mutual and individual discussions. To the question of whether the property was in the market he responded that any property was in the market if the price was right.
In 2006 the V&A was snapped up for R7bn by Istithmar, the investment arm of Dubai World, which is owned by the Dubai government and London & Regional, which is based in London, in the face of eager South African bidders.
The two companies together own about 75% of the V&A, while the remaining portion is held by an empowerment group.
At that time Growthpoint was one of various South African bidders for the sought-after property and in 2009 the group indicated that it was still interested in a deal.
According to the anonymous source the proposed transaction involves a takeover by Growthpoint of the income-generating assets, while the undeveloped portion of the V&A is to be managed by the PIC and sold to Growthpoint as it is developed.
The undeveloped portion of some 300 000m² was at the time highly attractive to Istithmar. It planned to spend billions on developing it.
Yet nothing has come of this. Moreover, with the global economic downturn the Arab Emirate has lost its appetite for new investments.
- Sake24
For business news in Afrikaans, go to Sake24.com.
