CASE STUDY GROWTHPOINT PROPERTIES

Green Buildings Form Just One Plank Of Overall Strategy

Growthpoint Properties is an international property company invested in real estate in South Africa and across the African continent, the UK, Australia and Eastern Europe. It is also a co-owner of the V&A Waterfront in Cape Town. The company is the biggest primary JSE-listed real estate investment trust (REIT) and owns an extensive portfolio of green-certified buildings in Africa. Growthpoint has also been instrumental in developing the SA REIT ESG framework, through the SA REIT Association and Green Building Council South Africa, which is likely to be launched in the second quarter of this year.

Case Study

1. Solar PV project: The company has13.9MW of solar projects in various phases of construction.

2. Early childhood development (ECD): Growthpoint has committed to funding several training programmes for ECD practitioners.

3. Enterprise development programme (Property Point): Growthpoint targets local economic development through Property Point, its enterprise development initiative.

SDGs TARGETED BY THE FUND

1. Solar PV projects:

• SDG 1 No poverty: PV installations will have an impact on the just transition

• SDG 2 Zero hunger: PV installations will have an impact on the just transition

• SDG 7 Affordable and clean energy: PV installations provide affordable and clean energy

• SDG 13 Climate action: PV installations reduce carbon emissions

2. Early childhood development (ECD):

• SDG 1: No poverty: Training for ECD practitioners ensures formal training for practitioners in rural areas

• SDG 2 Zero hunger: Training for ECD practitioners provides career opportunities for unemployed volunteers

• SDG 4 Quality education: Training for ECD practitioners is a critical component of the education value chain

3. Enterprise development programme (Property Point):

• SDG 8 Decent work and economic growth: Property Point implements Growthpoint’s local economic development policy

• SDG 9 Industry, innovation and infrastructure: Property Point has collaborated with the National Business Initiative to train people to repair commercial buildings

• SDG 11 Sustainable cities and communities: Capable businesses are identified in communities adjacent to Growthpoint’s operations

Estimated Measurable Outcomes Of The Projects

1. Solar PV: Growthpoint is expected to achieve its target of 27.4MWp of installed solar by its 30 June 2023 financial year end.

2. Early childhood development (ECD): Fourteen 14 ECD students whom Growthpoint sponsored in FY21 were set to graduate in 2022.

3. Enterprise development programme (Property Point): In FY22 the company’s investment in Property Point resulted in an additional 74 full-time jobs, while 848 jobs were sustained.

Risks To Outcomes From The Projects

1. Solar PV risks:

• Solar availability

• Pricing

• Regulatory uncertainty

• Skills availability

2. Early childhood development:

• Macroeconomic fundamentals

3. Enterprise development programme (Property Point):

• Macroeconomic fundamentals

Opportunities For Exposure

1. Solar PV: Green bonds issued by Growthpoint Properties helps the company to finance energy efficiency improvements in its commercial properties.

2. Early childhood development: Investors can gain exposure to this project by holding shares in the company.

3. Enterprise development programme (Property Point): Investors can gain exposure to this project by holding shares in the company