The property group and the state pension scheme Public Investment Corporation (PIC) will take equal shares in the mixed use development, said Growthpoint in a stock exchange news service announcement.

The 384,000-square-metre portfolio -- which includes hotels, shops, restaurants and offices -- draws 21 million visitors per year.

The deal will allow the partners to buy 100 percent of the interests of Strawinsky Properties BV and Istithmar South Africa FZE in Lexshell General Trading Limited, a shelf company that owns the Waterfront.

The agreement, subject to conditions, allows for Growthpoint and the PIC to buy the remaining ordinary shares of Lexshell's empowerment shareholders with the aim of 100 percent ownership after the deal is completed.

The Waterfront was first privatised in 2006 for seven billion rands to a consortium of London & Regional Properties, Dubai World's Isthithmar and local black empowerment groups.