Spear REIT Limited (JSE: SEA), South Africa’s only regionally focused Real Estate Investment Trust, has announced via SENS the acquisition of Consani Industrial Park, located in the established industrial hub of Elsie’s River Industria, Western Cape. The acquisition, valued at R437.3 million, marks another significant step in Spear’s ongoing expansion of its Western Cape industrial property portfolio.
Quintin Rossi, CEO of Spear, highlighted that the acquisition aligns with the company’s strategy to build a resilient and high-growth portfolio of industrial assets within the Western Cape, a region that continues to demonstrate strong economic fundamentals. “The Western Cape is the essence of our long-term growth strategy. We remain highly selective in our acquisitions, and Consani Industrial Park offers a prime location with a proven track record of stability and future growth potential. This asset adds meaningful scale, long-dated income profiles and quality to our portfolio and reaffirms our ongoing commitment to the industrial sector.”
Consani Industrial Park, situated on a 10.64-hectare erf, comprises a total gross lettable area (GLA) of 80,657 m² and is multi-let to a diverse range of industrial tenants, underpinned by long-term lease tenures. The property is strategically situated within a secure and established industrial precinct that continues to attract large-format occupiers, due to its proximity to key transport routes, reliable energy infrastructure, and organic growth potential.
The transaction supports Spear’s broader strategy of acquiring income-producing assets in proven nodes, offering both yield enhancement and long-term value creation. The acquisition was concluded at an initial yield of 9.71%, with additional value to be unlocked through a planned R34 million capital investment program over the next five years, focused on operational optimisation and strategic enhancements.
According to Rossi, Spear’s regional focus has been instrumental in identifying and executing this strategic acquisition. “We have a hands-on, laser-focused team dedicated to driving our growth strategy. Our approach is to be patient and selective when choosing assets that align with our investment objectives. We are committed to ensuring that each acquisition is the right fit, delivering long-term sustainable income and value for our shareholders.”
The acquisition will be funded through a combination of debt facilities and available cash reserves, following Spear’s successful private placement, which was concluded in June 2025.
The addition of Consani Industrial Park further reinforces Spear’s strategic footprint in the Western Cape, a region characterised by robust demand, positive economic drivers and resilient real estate fundamentals.
“Spear remains committed to building a defensive portfolio that delivers both stability and future growth. Through measured expansion and active asset management, with a focus on retail, commercial, and industrial assets that align with our long-term investment criteria, we aim to create sustainable value. With the forthcoming addition of Berg River Business Park in Paarl and Consani Industrial Park in Elsies River Industria, both subject to competition commission approvals, we are confident that Spear’s continued investments across the Western Cape will deliver strong returns for our shareholders,” concluded Rossi.
