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Spear Reit has turned a tidy profit on two Cape Town buildings it bought less than two years ago, selling them for R108m as it shifts its attention to bigger industrial developments across the Western Cape.The listed property group completed the sale of Hamilton House and Chiappini House in De Waterkant on Monday. It had bought the properties in 2024 as part of a portfolio acquired from Emira Property Fund for R80.75m, meaning the sale has generated a gain of about R27m.“The disposal further reduces Spear’s exposure to smaller, decentralised office assets and simplifies the overall portfolio in line with management’s strategy. The uplift in value of approximately R27.25m from the original purchase price added about 5c to Spear’s net asset value [per share] since acquiring the properties,” the group said.CEO Quintin Rossi said Spear will continue to sell assets that no longer fit its strategy whenever it can unlock value for shareholders.“We continue to actively manage our portfolio and exit noncore assets so we can reinvest in larger, higher yielding opportunities across the Western Cape,” Rossi said.Rossi said the proceeds from the disposal will support Spear’s growth plans, including the development of its 30,000m² GTX Industrial Park in George, which has an estimated total capital cost of about R400m once fully developed, including land costs.The funds will also contribute towards the group’s R86m distribution centre development in Blackheath, which is expected to begin construction in August for a national retailer.He said Spear’s approach is focused on unlocking value from existing assets while avoiding unnecessary redevelopment risk.
