Spear REIT Expands Western Cape Retail Footprint with Acquisition of Maynard Mall
Spear REIT Limited (JSE: SEA), South Africa’s only regionally focused REIT, has announced the acquisition of Maynard Mall, a 25,969m² convenience shopping centre located in Wynberg, Cape Town. The R455 million transaction further reinforces Spear’s hyper-local investment strategy, targeting high-growth nodes across the Western Cape.
The acquisition aligns with Spear’s objective to grow its portfolio of well-located, high-quality convenience retail assets within the Western Cape. Maynard Mall, centrally located in Wynberg, Cape Town, is a convenience-orientated community shopping centre anchored by Shoprite, with a strong tenant mix comprising 70% national retailers — including Ackermans, Absa Bank, Clicks, Capitec Bank, KFC, Hungry Lion, Nedbank, Pep, Sportscene, and Zone Fitness — as well as essential services such as the Department of Home Affairs and local traders. The centre caters to both daily and weekly shopping needs, drawing from a broad residential catchment area and the commuter market, with an annualised footfall of 6 million shoppers.
“This acquisition is a pivotal extension of our retail footprint in Cape Town’s established Wynberg node,” said Quintin Rossi, CEO of Spear REIT. “It deepens our exposure to resilient consumer retail trade and enhances our income stability profile, supported by a weighted average lease expiry of 57 months.”
The anticipated transfer date is 1 January 2026, with the acquisition being funded through a combination of cash from Spear’s recent R 749 million capital raise and secured debt facilities. The transaction is set to deliver an initial yield of 9.55%, with an additional R20 million earmarked for medium-term capital expenditure. Spear has identified asset enhancement capital expenditure measures of up to R 20 million to be carried out over a three to five-year period to enhance the value proposition of Maynard Mall. These items include the potential increase in the self-storage offering, future expansion of the PV solar installation, modernisation of selected lifts, escalators, HVAC equipment and mechanical installations. Assuming the full asset enhancement capital expenditure is accounted for on the transfer date, the post capex, stabilised yield would be 9.15% – 9.3%.
“Spear has actively pursued growth opportunities in Cape Town’s convenience retail sector — on terms that aligned with its strategic and financial criteria; requiring management to remain patient, selective, and firmly committed to its investment strategy,” Rossi continued. “Today’s announcement gives credence to our approach.”
The transaction is subject to the approval by the Competition Commission. Once implemented, Spear’s retail portfolio will increase to approximately R1.4 billion in value, comprising 81,205m² in gross lettable area.
In addition to Maynard Mall, Spear recently announced the acquisition of Consani Industrial Park for R437 million. Following the implementation of both transactions, Spear’s loan-to-value (LTV) ratio is projected to be 28%, well below the company’s target range of 38%–43%, providing sufficient capacity for future growth opportunities.
These recent transactions follow the successful integration of Spear’s R1.15 billion Western Cape portfolio acquisition in October 2024, which expanded the group’s asset base to R5.5 billion and delivered 97% occupancy at FY2025 year-end. Following the implementation of the Maynard Mall and Consani Industrial Park acquisitions, Spear’s total asset base is expected to increase to R6.6 billion. Notably, Maynard Mall also includes a 924 kWp solar plant, supporting Spear’s sustainability strategy by contributing to energy efficiency and reducing environmental impact.
“Building on our strong FY2025 performance and positive momentum into FY2026, we remain focused on executing our Western Cape strategy — targeting high quality assets in established nodes underpinned by robust leasing and real estate fundamentals,” concluded Rossi.
Spear will continue to focus on measured growth across the Western Cape, with a focus on retail, commercial, and industrial assets that align with its long-term investment strategy.
