L2D makes strides in sustainability, reports retail portfolio healthy

As part of its sustainability efforts, Liberty Two Degrees (L2D) expects to complete its solar energy rollout of 17 MW across its retail centres by the end of 2025, which will reduce its overall energy consumption from the grid by about 16% to 17%, said L2D lead sustainability specialist Brian Unsted.

During a media roundtable on October 24 he highlighted the company’s sustainability initiatives amid a global emphasis on achieving net-zero goals by 2050.

As part of its solar rollout initiative, Unsted noted that the company has established 1 MW of solar at its retail centre Sandton City, adding an additional 5 MW this year to the Eastgate shopping centre, both in Gauteng.

“Currently in South Africa, Eastgate has the biggest solar rooftop PV system in the country, which we're very proud of,” he said, adding that the centre boasts about 14 000 rooftop solar panels.

Meanwhile, L2D is also focusing on reducing water consumption across its assets, which involves the replacement of water-cooled air conditioning systems to air-cooled systems across its retail centres, which should also be completed in 2025.

Unsted said the project is tracking ahead of schedule and is expected to reduce water consumption by about 18% to 20%.

He noted that the company has also evaluated the use of grey and black water, as well as rainwater harvesting for its retail centres, having already rolled out rainwater harvesting at a number of its malls.

Additionally, Unsted said the company has achieved Net Zero Waste accreditation in 2024, adding that the company is diverting over 90% of waste generated at its sites away from landfills.

Also speaking at the roundtable, L2D chief commercial officer José Snyders noted that the company’s retail portfolio has shown year-on-year turnover growth of over 6%, while retention rates on lease renewals remain at over 85%.

He added that the company expects 4% positive reversions on lease renewals this year, adding that hospitality assets are on a healthy trajectory, with occupancy ratios in excess of 70% for the two hotels it owns.

Further, while the macroenvironment remains challenging, there are signs of improvement, such as decreasing interest rates and a positive GDP growth sentiment.

“The consumer remains under strain, and the country obviously still has very high unemployment rates, and that impacts spending, especially in retail portfolios,” said Snyders, adding that ageing infrastructure, coupled with a threat to the security of water supply, particularly in Gauteng, has also been a concern.

Meanwhile, Snyders also highlighted the strides being made at Eastgate.

“We have seen significant improvement in the returns out of that asset and its valuation over the last . . . three years.  It takes a long time to turn a large retail asset around, but the trajectory for that asset is certainly healthy,” he said.