July 30 2025 10:00
SOUTH AFRICA
JSE-listed Spear Reit (JSE: SEA) made two acquisitions this week, made an industrial and a retail acquisition.
The country’s only regionally focused Real Estate Investment Trust (Reit) acquired Consani Industrial Park, located in the established industrial hub of Elsie’s River Industria, Western Cape. The acquisition, valued at R437.3m, would be a significant step in Spear’s ongoing expansion of its Western Cape industrial property portfolio.
Quintin Rossi, CEO of Spear, said the acquisition aligned with “the company’s strategy to build a resilient and high-growth portfolio of industrial assets within the Western Cape, a region that continues to demonstrate strong economic fundamentals”.
“The Western Cape is the essence of our long-term growth strategy. We remain highly selective in our acquisitions, and Consani Industrial Park offers a prime location with a proven track record of stability and future growth potential. This asset adds meaningful scale, long-dated income profiles and quality to our portfolio and reaffirms our ongoing commitment to the industrial sector,” he said.
Consani Industrial Park, situated on a 10.64-hectare erf, comprises a total gross lettable area (GLA) of 80,657 m² and is multi-let to a diverse range of industrial tenants, underpinned by long-term lease tenures. The property is strategically situated within a secure and established industrial precinct that continues to attract large-format occupiers, due to its proximity to key transport routes, reliable energy infrastructure, and organic growth potential.
The transaction supports Spear’s broader strategy of acquiring income-producing assets in proven nodes, offering both yield enhancement and long-term value creation, according to Rossi.
The acquisition was concluded at an initial yield of 9.71%, with additional value to be unlocked through a planned R34m capital investment program over the next five years, focused on operational optimisation and strategic enhancements.
The acquisition would be funded through a combination of debt facilities and available cash reserves, following Spear’s successful private placement, which was concluded in June 2025.
The addition of Consani Industrial Park further reinforces Spear’s strategic footprint in the Western Cape, a region characterised by robust demand, positive economic drivers and resilient real estate fundamentals.
“Spear remains committed to building a defensive portfolio that delivers both stability and future growth. Through measured expansion and active asset management, with a focus on retail, commercial, and industrial assets that align with our long-term investment criteria, we aim to create sustainable value. With the forthcoming addition of Berg River Business Park in Paarl and Consani Industrial Park in Elsies River Industria, both subject to competition commission approvals, we are confident that Spear’s continued investments across the Western Cape will deliver strong returns for our shareholders,” said Rossi.
Spear also acquired Maynard Mall, located in Wynberg, Cape Town. The seller was Aria Property Group. The 25,969m² convenience shopping centre was bought for R455m. Rossi said the deal reinforced Spear’s “hyper-local investment strategy, targeting high-growth nodes across the Western Cape”.
The acquisition aligns with Spear’s objective to grow its portfolio of well-located, high-quality convenience retail assets within the Western Cape, he said.
Maynard Mall, centrally located in Wynberg, Cape Town, is a convenience-orientated community shopping centre anchored by Shoprite, with a strong tenant mix comprising 70% national retailers, including Ackermans, Absa Bank, Clicks, Capitec Bank, KFC, Hungry Lion, Nedbank, Pep, Sportscene, and Zone Fitness, as well as essential services such as the Department of Home Affairs and local traders. The centre caters to both daily and weekly shopping needs, drawing from a broad residential catchment area and the commuter market, with an annualised footfall of 6-million shoppers.
“This acquisition is a pivotal extension of our retail footprint in Cape Town’s established Wynberg node,” said Quintin Rossi.
“It deepens our exposure to resilient consumer retail trade and enhances our income stability profile, supported by a weighted average lease expiry of 57 months,” he said.
The anticipated transfer date is January 1 2026, with the acquisition being funded through a combination of cash from Spear’s recent R749m capital raise and secured debt facilities. The transaction is set to deliver an initial yield of 9.55%, with an additional R20m earmarked for medium-term capital expenditure.
Spear has identified asset enhancement capital expenditure measures of up to R20m to be carried out over a three to five-year period to enhance the value proposition of Maynard Mall.
These items would include the potential increase in the self-storage offering, future expansion of the PV solar installation, modernisation of selected lifts, escalators, HVAC equipment and mechanical installations. Assuming the full asset enhancement capital expenditure is accounted for on the transfer date, the post capex, stabilised yield would be between 9.15% and 9.3%.
The transaction is subject to the approval by the Competition Commission. Once implemented, Spear’s retail portfolio will increase to approximately R1.4bn in value, comprising 81,205m² in gross lettable area.
Spear’s loan-to-value (LTV) ratio is projected to be 28%, well below the company’s target range of 38%–43%, providing sufficient capacity for future growth opportunities.
These recent transactions follow the successful integration of Spear’s R1.15bn Western Cape portfolio acquisition in October 2024, which expanded the group’s asset base to R5.5bn and delivered 97% occupancy at FY2025 year-end. Spear acquired the portfolio from Emira Property Fund. Following the implementation of the Maynard Mall and Consani Industrial Park acquisitions, Spear’s total asset base is expected to increase to R6.6bn. Notably, Maynard Mall also includes a 924 kWp solar plant, supporting Spear’s sustainability strategy by contributing to energy efficiency and reducing environmental impact.
“Building on our strong FY2025 performance and positive momentum into FY2026, we remain focused on executing our Western Cape strategy, targeting high quality assets in established nodes underpinned by robust leasing and real estate fundamentals,” said Rossi.
alistair@propertyflash.co.za
