Spear REIT Acquires Santam Precinct in US$50 MILLION (R960 Million) Deal

Western Cape-focused Spear REIT Limited has acquired a premium-grade office portfolio in Tygervalley, Cape Town, from Ingenuity Property Investments for US$50million(R960 million), strengthening its presence in one of the region’s top-performing commercial hubs.

The portfolio comprises three fully let office buildings with 28,500m² of gross lettable area, occupied by blue-chip corporate tenants, providing a resilient long-term income stream. Funded through debt and existing cash following Spear’s recent successful bookbuild, the acquisition aligns with the REIT’s Cape-focused strategy of investing in high-quality, defensive assets.

The deal is projected to be earnings-enhancing, delivering an initial acquisition yield of 9.67% and average annual rental escalations of 6.5%, while capitalising on Tygervalley’s low office vacancy rates and sustained tenant demand.

Advisory Team:

Cliffe Dekker Hofmeyr (CDH)

Dane Kruger

Justine Krige

Nicholas Carroll

Theodore Pauw