Spear REIT expands portfolio with R455 million Maynard Mall acquisition

Western Cape-focused Spear REIT said it will acquire Maynard Mall, in Wynberg, Cape Town, for R455 million, marking its second acquisition concluded in two consecutive trading days.

Maynard Mall was being acquired from the Sphinx Trust and Glisan Street Investments, and the deal announced Monday was aligned with Spear’s objective to grow its portfolio of well-located, convenience retail assets within the Western Cape, the REIT’s directors said in a JSE notice.

On Friday, Spear announced the acquisition of Consani Industrial Park in Elsie’s River Industria, for R437.3m, from Adrenna Property Group.

Maynard Mall is a dominant, convenience-oriented community shopping centre anchored by Shoprite. It is fitted with a 924kWh solar installation, which further aligns with Spear's sustainability strategy, and 70% of tenants are national retailers, such as Ackermans, Absa Bank, Clicks, Capitec Bank, Hungry Lion, Sportscene, and Zone Fitness, alongside essential services and local traders.

Spear’s directors said the centre caters to a wide demographic profile, it has strong real estate fundamentals, low vacancy levels, long-dated weighted average lease expiries, and favourable prospects for rental income growth and long-term capital appreciation.

Meanwhile, they said on Friday that the Consani acquisition aligned with their strategy to grow their portfolio of well-located industrial assets within the Western Cape. 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.” The precinct was attracting large-format occupiers reliant on energy continuity and organic growth options within Consani Industrial Park.

“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 said.

The 80,657 square metre industrial park 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 2023.

In the year to end February 28, 2025, Spear completed the acquisition of 13 properties in the Western Cape 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 R182.15m, which marked the REIT's first entry into the Paarl property market.

Spear aims to grow the 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 on Monday afternoon, a price that had 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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