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Spear REIT Limited officially listed on the JSE

Spear Reit Limited officially listed on the Johannesburg Stock Exchange (JSE) yesterday, 11 November at 9am under share code SEA:SJ.

We are extremely proud of our team that made this day a reality and know that hard work and determination will be key to our success going forward!

 

Spear to bring it’s Cape speciality to market

There will be a feeling of déjà vu about November’s listing on the JSE of Spear Reit, a property investment vehicle focusing exclusively on the Western Cape.

Spear is headedby Mike Flax, who brought a similarly Western Cape-focused Spearhead Properties to the JSE in 1999. Spearhead was eventually bought out by Redefine in 2006.

Flax said Spear intended to raise R300m at listing, which would infer a market valuation of about R1bn at listing. “We have already issued R200m worth of shares in a private placement, so there will only be R100m made available to the public.”

Spear could grow its assets under ownership to R6bn-R7bn in the medium term. “There are a number of family-owned property companies in the Western Cape that we are already talking to around potential deals to reverse list assets into Spear.”

 

Spear’s portfolio is anchored by Sable Square near Century City and the Upper East Side hotel precinct in Woodstock. There is also a mix of commercial, residential and industrial properties in central Cape Town, Salt River, Parow, Milnerton, Paarden Eiland and Blackheath.

Flax said the average yield on the portfolio was 9%, with the net distributable yield coming in at about 7.5%. “We hope to deliver sustainable dividend growth ahead of inflation and in the top quartile of our peer group.”

At listing, Spear will hold 25 properties with a gross lettable area of 171,000m². The portfolio value is estimated at R1.4bn. A further 141,000m² of undeveloped bulk is available in the portfolio to unlock additional value.

“Key to our success and good prospects is that we are focused on the Western Cape, with its highly favourable economic and property fundamentals. It has the fastest growth in GDP in SA, with an excellent track record of good governance and value-adding infrastructure spending.”

Market watchers were not inclined to comment on Spear’s listing until further details were made available.

Regionally focused property counters are rare on the JSE. Property developer Ingenuity is the only other real estate-aligned company that focuses on the Western Cape. Its shares have been flat for the past three years.

Tyger Valley gets CID

After 30 months of planning and getting the necessary approval, a large portion of the Tyger Valley commercial district will get its own City Improvement District (CID).

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A Journey of a Thousand Miles Starts with One Step

Apart from investing in strategic properties in the Western Cape, Spear Properties is rallying behind the rejuvenation of some of Cape Town’s key commercial nodes. We speak to Spear Properties’ Managing Director Quintin Rossi about the company’s growth in and invested focus on the greater Cape Metropole. read more…

The Spear of the Renaissance

Exciting new project coming

In August 2012 a substantial portion of properties on Edward Street, Tygervalley changed hands and were acquired by Spear Properties which is headed up by Cape Town property players Quintin Rossi, Mike Flax and Abu Varachhia.

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Keeping Entrepreneurial Flair in Growing Young Fund

The property sector has seen some consolidation and revisiting of strategies among many of the major listed property funds and owners in recent years, but this has also opened up opportunities for other players to enter the market and make use of the gaps that this has created. One such company is Spear Properties, a private equity real estate investment company that specialises in Western Cape properties.

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DoubleTree by Hilton at the Upper Eastside & Offices

Featuring a luxury hotel, world class conferencing facilities, stylish apartments, great shops, an outdoor amphitheatre and trendy offices, the Upper Eastside has something for everyone. Whether you’re in town for business, taking in beautiful Cape Town or you’re a local looking for the latest hip and happening hub this is the place to be.

Our location in the trendy suburb of Woodstock means you’re never too far from anything or anywhere in the city. The V&A Waterfront, Table Mountain National Park, the Historic City Centre, diverse shopping destinations and sandy beaches of the Atlantic Seaboard are only a few minutes’ drive away. The fast developing suburb of Woodstock also offers you a variety of hip restaurants, art galleries and antique furniture stores, while the well known Old Biscuit Mill and Neighbourgoods market are within walking distance of the hotel.

www.capetownuppereastside.doubletree.com