Keillen Ndlovu SAPOA April 2026 Newsletter

Increased direct property transaction activity despite global markets volatility and uncertainty

The positive trend in direct commercial property transactions from 2025 continued through the first four months of 2026 despite ongoing volatility and uncertainty from the Middle East war.

Additionally, there has been a shift in investor preference toward local opportunities rather than offshore investments, although interest remains in Central and Eastern Europe (CEE), particularly Poland, as well as in Iberia (Spain and Portugal).

The table below provides further details on the South African listed property sector’s local transactions.

Source: Keillen Ndlovu Research, April 2026

Equity raises have resumed via accelerated bookbuilds, with Spear and Fairvest securing R1 billion and R900 million, respectively, in late April; both bookbuilds were oversubscribed. Assuming the markets remain stable, we are likely to see the positive trend in bookbuilds continue. Meanwhile, Fortress retained R133 million through a capitalisation issue.

Alongside improving equity activity, the listed property sector has remained highly active in debt capital markets (DCM). REITs and property companies—including Attacq, Fortress, Hyprop, Redefine, and Resilient—raised R5,75bn through Domestic Medium Term Notes (DMTN) issuances. These were all oversubscribed and priced at lower margins than previous issuances, with most at record-low levels. Notably, all these issuances occurred after the Middle East war began. The demand is coming from institutional investors and banks.

Source: Keillen Ndlovu Research, April 2026

Meanwhile, unlisted entities also executed several deals. Flanagan & Gerard secured full ownership of Morningside Shopping Centre in Johannesburg. The Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation (PIC), acquired stakes in 14 buildings in Century City, Cape Town, for R1,8 billion. Pareto, owned by GEPF, also announced its intention to take full control of Sandton Convention Centre, Sandton Towers, and Sandton Garden Court hotels in a R1,1 billion deal, increasing its ownership from 25% to 100% undivided share.

The Waterfall City Conference Centre & Hotel Development is a strategic collaboration between Attacq Limited and Rabie Property Group. Discovery bought its head office for R4,05 billion from Growthpoint Properties (55%) and the trustees of the Truzen 114 Trust (45%). Growthpoint, in turn, purchased a 45% stake in Discovery Phase 2, which it does not currently own, from Zenprop for R323 million.

Additional transactions are expected. For example, Spear and Fairvest plan to allocate part of their bookbuild proceeds to property acquisitions. Hyprop is considering acquiring minority undivided shares in The Glen Mall in Johannesburg and Canal Walk Shopping Centre in Cape Town. Growthpoint Properties and Attacq are launching high-end residential developments in Sandton and Waterfall City, respectively, in partnership with Tricolt, a leading luxury property developer.

Several multifamily residential apartments have been completed or are under development in and around Sandton, Johannesburg. Listed property companies and REITs have sold underperforming office properties to private developers for residential conversion, which has helped reduce office sector vacancies.

Increased transaction activity, supported by equity and debt funding, demonstrates the resilience of the South African direct commercial property market. It enhances liquidity and price discovery despite ongoing volatility in local and global markets.

Independent Property Analyst