Spear REIT’s recent Category One acquisition of Emira Property Fund’s Western Cape portfolio took a significant step forward on 31 July 2024, as shareholders voted in favour of the purchase. With this approval, the transaction is now unconditional, paving the way for the transfer process to continue. The acquisition expands Spear’s asset base to 40 properties, with a combined value of R5.4 billion.
The strong shareholder support underscores the confidence in Spear’s strategic direction, demonstrated not only through equity investments but now also through this pivotal vote. The R1.146 billion transaction, encompassing a diversified portfolio exclusively situated in the Western Cape, is set to enhance both the income and asset quality of Spear’s existing portfolio. This acquisition boosts the portfolio’s size by 16%, bringing it to a total of 502,000m² of high-quality real estate assets, all within the Western Cape. The portfolio includes 93,491m² of industrial, medical, life sciences, retail, and commercial properties strategically located in key nodes across the Cape Metropole.
Financing for the acquisition has been secured through a blend of available equity and debt, including proceeds from asset disposals and funds raised during the R313.5 million private placement concluded in February 2024. The transaction is expected to be finalised and integrated into Spear’s portfolio before the end of the year.
About Spear REIT
Spear was founded in 2011 as a private equity real estate investment business focusing on owning Western Cape assets with a Cape Town preference. The founders of Spear, industry stalwarts Mike Flax, Abu Varachhia and Quintin Rossi have propelled Spear from a private equity fund to a JSE listed REIT as the only regionally focused REIT on the JSE that exclusively focuses on owning high-quality assets within the Western Cape. Quintin Rossi is Group Chief Executive Officer supported by a highly competent executive team being Chief Financial Officer Christiaan Barnard, Chief Investment Officer Kim Pfaff-Karg and Chief Operations Officer Cliff Toerien.
Spear achieves specialisation through its focused regional investments, while its diversification strategy is driven by investing across a variety of asset types. Since being listed on the JSE in November 2016 with assets valued at R1.4 billion, Spear has grown significantly. As of May 2024, excluding assets pending transfer, Spear’s current portfolio is valued at R4.62 billion, comprising a mix of commercial, industrial, retail, and mixed-use properties.
Spear is a fully internally managed REIT conducting all asset, property, financial and development management in-house. Spear owns the iconic No.2 Long Street in Cape Town which is currently where its head office is located.
