Spear Reit is the only Western Cape property specialised fund listed on the JSE. The company has grown strongly since Mike Flax listed it in November 2016. The company does not have a bias to any particular type of property asset but it only buys assets which are in the Western Cape. Flax recently became executive chair and the MD he appointed, Quintin Rossi, became the new CEO. Spear listed with assets worth R1.5bn and a market cap of about R900m. Since then, it has grown to own R3.3bn in assets and the company has an impressive pipeline of potential deals because Flax and Rossi have a strong network of property contacts. The asset portfolio should reach R5bn by the end of 2018 say some fund managers. Spear’s strategy is to grow, but not for growth’s sake, and Flax and Rossi say they will not be aggressive in a weak economic environment. Real estate throughout the country is under pressure. This includes the residential market in Cape Town, where house price growth has begun to tap...

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