Our philosophy is based on partnership – we invest alongside our stakeholders. We have a focused investment view, which is executed free from unnecessary complexity. We are long-term active asset managers who rely on our independent investment process. We are not constrained in terms of property selection. We care about leaving a positive legacy!
We have a small and exclusive corporate clientele, and we are able to service our clients personally. Our services are tailored, discreet and confidential, and we keep our affairs clear, concise, focused and uncomplicated.
As innovators, we source appropriate property solutions for our corporate clients – especially solar and generator solutions that ensure our clients can operate at their optimal level. Our directors have led many iconic and flagship property developments within South Africa and India. The Portside Office Tower, the tallest building in Cape Town, is a perfect example of this.
Our primary skill is to optimise the attractiveness of the spaces that are let.
Urban Growth primarily focuses on large scale Supply Chain Logistics Industrial ‘moderate risk’ Properties that generate a solid cash yield and offer strong growth potential mainly within South Africa.
Urban Growth sits squarely in the Value Add band, with target IRRs of 12 – 25% and a meaningful blend of income yield and capital growth.
Core | Value Add | Opportunistic | |
|---|---|---|---|
RISKS | Low Risk | Moderate Risk | High Risk |
TARGET RETURNS | 5 – 12 % IRR Returns | 12 – 25 % IRR Returns | + 25 % IRR Returns |
RETURN COMPOSITION | Income Yield Investment | Income + Capital Growth | Capital Appreciation |
HOLDING PERIOD | 10+ Years | 3-7 Years | 5 Years or Fewer |
LEVERAGE | Low Gearing < 25% | 50-75% Gearing | 75-100% Gearing |
INVESTMENT PROFILE | Institutional | Value Adding Philosophy | Opportunistic Entrepreneurial |
A Grade Buildings | Brownfield Developments | Greenfields Developments | |
AAA Tenanted | Refurbishments | Expansion Capital | |
Low Leverage | High Growth Nodes | Low Barriers to Entry |
Urbanisation rates are increasing at almost 5% annually, e.g. in Cape Town alone that means an increase of 350 000 economically active people into the city every year (as of 2020).
The drive to an urban renaissance and the building of sustainable towns at the urban edge, are crucial for the continued growth of ever expanding cities. We understand the importance of responsible densification and better use of public assets. As more people have to be accommodated, we will create commercial, industrial, retail and
residential assets to continually fulfill these demands.
Urban Growth offers state-of-the-art development systems with the objective of finding the most suitable solution to all property development challenges.
Our expertise lies in finding Opportunistic and Value-Add property investment opportunities, and turning them into Core investments. We specialise in large-scale supply chain logistics and industrial properties.
We maximise the human and investment capital returns above those achieved in the traditional core investment space.
The Portside Tower, located in the nucleus of Cape Town’s business and entertainment hub boasts as the city’s tallest building and has AAA grade office space to let. This five star Green Star rated Building offers spacious open plan layouts and incomparable views of the harbor, city and mountains. Urban Growth as primary deal maker, performed the concept design and promotion of the building on behalf of its main client – First Rand Group.
The popular local shopping centre, was successfully revamped in 2016. This major revamp included the acquiring of an adjacent property which was rezoned and consolidated into the main erf. This asset was redeveloped in conjunction with our partners Fairvest Property Fund Ltd. Urban Growth has subsequently acquired the entire property from Fairvest effective 1 October 2021 and sold in October 2022.
Urban Growth developed this 3 000m2 Centre. It was the first Shoprite Mini developed as a Greenfields Project in South Africa. A project finished in budget and on deadline. The development centred around the Shoprite and Shoprite Liquor Store, substantially altered the urban fabric of the Klapmuts areas in and around Stellenbosch. This property was sold in 2018.
The popular local shopping centre, was successfully revamped in 2016. This major revamp included the acquiring of an adjacent property which was rezoned and consolidated into the main erf. This asset was redeveloped in conjunction with our partners Fairvest Property Fund Ltd. Urban Growth has subsequently acquired the entire property from Fairvest effective 1 October 2021 and sold in October 2022.
This website has been prepared for information purposes only. It does not constitute, and should not be construed as, an offer, invitation, solicitation or recommendation to acquire, subscribe for or participate in any investment or financial product, nor does it constitute financial, legal or tax advice.
The Bastion Real Estate Partnership is structured as an En Commandite Partnership under South African law. Participation in the Partnership is subject to the terms, conditions, and eligibility requirements set forth in the Partnership’s governing and investment documentation.
Any target returns, forecasts, projections, illustrations or forward-looking statements contained in this document are provided for illustrative purposes only and are not guaranteed. Actual outcomes and investment returns may differ materially from those projected. The value of an investment may increase or decrease, and investors may lose some or all of their invested capital. Past performance is not indicative of future performance.
Prospective investors should carefully consider the applicable investment documentation, their own investment objectives and circumstances, and obtain independent financial, legal and tax advice before making an investment decision.
Skybound Capital (Pty) Ltd is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 2002 (FSP No. 35733).
Bastion Real Estate Partnership is an En Commandite Partnership established to provide investors with exposure to a portfolio of South African real estate assets. Skybound Capital (Pty) Ltd, an authorised Financial Services Provider, acts as investment manager to the Partnership, while Urban Growth provides property expertise across the underlying real estate portfolio. If you would like to receive further information about Bastion, please complete the form below. Your enquiry will be referred to an appropriate member of the investment team. Submission of this form does not constitute an application to invest, nor does it create any obligation on you or the Partnership.
