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Spear REIT has completed the disposal of Hamilton and Chiappini House after fulfilling all transaction requirements, marking another step in its capital recycling strategy. The company said the transaction generated a value uplift of about ZAR 27.25 million, adding nearly 5 cents to its net asset value. The two Cape Town properties had been identified as non-core assets, with the disposal allowing Spear REIT to unlock value and redeploy capital into higher-yielding investment opportunities in the Western Cape. The transaction follows an earlier sale agreement announced in the past few months.
Spear REIT Ltd has completed the disposal of Hamilton and Chiappini House after implementing the transaction recently, according to a voluntary announcement issued by the company. The disposal was finalised on July 13, completing a process that had been announced earlier after all required conditions were met.
The company said the transaction resulted in a value uplift of approximately ZAR 27.25 million, which increased its net asset value by around 5 cents.
Hamilton House and Chiappini House are located in the De Waterkant precinct of Cape Town. Spear REIT had entered into an agreement to sell the two properties as going concerns for approximately ZAR 100 million, with the consideration increasing over time under the terms of the agreement. The transaction subsequently received approval from the relevant competition authorities before becoming unconditional.
The company had acquired the properties in 2024 as part of its purchase of selected Western Cape assets from Emira Property Fund. Following a review of its portfolio, Spear REIT classified the two buildings as non-core assets, noting that the precinct has increasingly shifted towards residential and redevelopment activity, making the properties less aligned with its long-term income-focused investment strategy.
According to the company, the disposal forms part of its ongoing capital recycling strategy, which focuses on monetising assets when value can be unlocked and redeploying the proceeds into scalable industrial, convenience retail and institutional-grade commercial properties across the Western Cape. Management had also stated that the transaction allows the company to realise value without taking redevelopment risk while simplifying its overall portfolio composition.
The disposal also reduced Spear REIT's exposure to smaller decentralised office assets while supporting its broader strategy of improving portfolio quality and directing investments towards assets that offer stronger long-term earnings resilience and growth potential.
Source Reuters
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