Spear Reit has become the first Western Cape region-specific property fund to list on the JSE. Spear, led by Cape property expert Mike Flax, listed on the Alternate Exchange on Friday. The relatively small real estate investment trust has assets worth R1.5bn and a market capitalisation of about R900m. Flax said Spear would appeal to people who were seeking to invest in a specialised property company with high growth potential. "The Cape metro area grew about 7% last year; compare that with SA, which is struggling to grow at half-a-percent. We are investing in a diverse range of assets in the Cape and believe we can offer dividend growth in the teens each financial year for the next five or so," said Flax. Spear listed at R9.25 per share and closed at R9.30. It traded on a forward yield of 8.2%. Spear’s investment portfolio in the Western Cape is made up of 21 properties comprising a mix of 1% residential, 46% industrial, 22% retail, 22% office and 9% hospitality. Some of the fund’s ...
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