Buys industrial property for R110.5m

SPEAR REIT, the listed property company that invests only in high-quality real estate in the Western Cape, has entered into a sale agreement to acquire an industrial rental property in Blackheath Park for R110.5 million. The company said on Friday the acquisition was in line with its strategy to invest in highquality assets in the Western Cape and increase its industrial assets in Cape Town. It added that the property was next to a Spear property in the Blackheath node and therefore provided an expansion opportunity for the Spear Blackheath distribution centre off the back of future tenant demand. The 38 185m² property has an average gross rental per square metre of R32.89, a weighted average annual escalation of 8 percent, weighted average lease duration of 1.83 years and a 5 percent vacancy by gross lettable area. Spear said the acquisition was at a yield of 10.43 percent and was accretive to shareholders. The acquisition will be become effective on the transfer date, which is expected to be on April 1 next year. – Roy Cokayne