May 13 2026 17:30
Spear Reit has disposed of two commercial properties in Cape Town for more than R100m at a R26m profit.
The properties, Hamilton House and Chiappini House, both located in the Cape Town CBD, are long-term commercial rental properties.
The properties comprise 3,452 sqm and 1,024 sqm of commercial space, respectively, in two side-by-side erven in De Waterkant, Cape Town.
Spear acquired both properties in October 2024 for around R80m as part of the acquisition of JSE-listed Emira Property Fund’s Western Cape portfolio.
Now, 19 months later, the group has concluded a deal to dispose of the properties for R100m, with the price escalating by 0.5% per month from 1 April 2025 to the date of registration of the transfer.
The assets are being disposed for approximately R107m.
The disposal was approved by the Competition Authorities on 11 May, the group said.
The group described the properties as non-core assets in its portfolio, which could be sold to unlock value for shareholders and allow focus on higher-yielding properties in the province.
“The disposal aligns with Spear’s capital recycling strategy when clear shareholder value unlock opportunities occur,” Spear said.
The long-term highest and best use for the properties lies in redevelopment, which diverges from Spear’s income-focused strategy, the group said.
However, this created a clear and actionable opportunity to unlock value, which the group “crystallised” by selling the buildings at a premium to the original acquisition price.
“The disposal further reduces Spears’ exposure to smaller, decentralised office assets and therefore simplifies overall portfolio composition in line with management strategy,” it said.
The uplift in value of approximately R26m from the purchase consideration added 5 cents to Spear’s net asset value since the acquisition of the properties.
247@propertyflash.co.za
