Cape Times

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

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