Spear REIT buys R1.1bn portfolio from Emira Property Fund

South African property fund, Spear, has recently made headlines with its agreement to purchase Emira Property Fund's Western Cape real estate portfolio for R1.1 billion. The move represents a strategic shift for Spear, tapping into the Western Cape's rapidly growing industrial, retail, commercial, and residential sectors. Quintin Rossi, the CEO of Spear, joined CNBC Africa to discuss the details of the deal and shed light on the company's expansion plans. The acquisition, which includes a mix of industrial, medical, life sciences retail, and commercial assets, marked a significant milestone for Spear. Rossi highlighted the opportunities presented by the Western Cape's thriving economy, emphasizing the region's infrastructure investments, growing residential demand, and overall contribution to South Africa's economy. The purchase will increase Spear's portfolio under management to R5.4 billion and its square meterage to 502,000 square meters. With a strategic focus on the Western Cape, Spear aims to grow its asset ownership to around R15 billion and market cap to R9 billion in the coming years. The company's approach to growth is deliberate and methodical, prioritizing sustainable cash flows for shareholders and accretive deals that enhance the core portfolio. The Western Cape's favorable economic indicators and low unemployment rate position it as a key investment destination for Spear, which remains committed to a localized and hands-on asset management strategy. Rossi expressed confidence in the Western Cape market, citing its unique geographical constraints and ongoing investments as driving forces behind continued real estate opportunities. Despite the active market environment, opportunities for value creation still exist, particularly outside established nodes. As Spear looks ahead, it remains dedicated to maximizing impact and value across its portfolio while maintaining a strong foothold in the Western Cape. The company's focus on responsible growth and strategic investments underscores its long-term vision for sustained success in the region.