Spear REIT acquires Consani Industrial Park for R437.3 million

Western Cape-focused Spear REIT has acquired Consani Industrial Park in Elsie’s River Industria for R437.3 million from Adrenna Property Group.

Spear directors said the acquisition aligns with their strategy to grow a portfolio of well-located industrial assets within the province. The acquisition would diversify and strengthen their exposure to “highly sought after industrial nodes in the region.”

“Consani Industrial Park possesses strong fundamentals and favourable prospects for rental income growth and long-term capital appreciation.” Spear's management said Monday. The precinct was attracting large-format occupiers reliant on energy continuity and organic growth options within Consani Industrial Park, they said.

“The acquisition supports Spear's focus on securing assets that generate sustainable income and long-term value through long-dated lease tenures and robust rental growth rates,” they added.

The 80 657 square metre industrial park is securing an average R49.52 per square metre in gross rentals, of which R82.52 per square metre is being obtained under roof, and yard rentals were averaging at R13.54 per square metre. The acquisition would be debt-funded on a 45% loan-to-value ratio, and the remaining portion would be funded from available cash resources, following a private placement concluded by Spear in June 2025.

In the year to end February 28, 2025, Spear completed the acquisition of 13 properties in the Western Cape in a transaction valued at R1.15 billion. By the year-end, its portfolio had grown by 54% to R5.5bn from R4.6bn in 2024.

In May, post the financial year-end, Spear acquired Berg River Business Park in Paarl for R182.15 million, which marked the REIT's first entry into the Paarl property market.

The group aims to grow its asset base to R15bn over the next 7 to 10 years while maintaining a disciplined investment approach for a defensive and robust portfolio.

Spear’s net asset value per share at year-end increased by 3.57% to R12.20. Spear’s share price was untraded at R10.15 late Monday morning, a price that has risen over 12% through the past 12 months. The company’s management has forecast 4% to 6% growth in distributable income per share for the 2026 financial year.

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