Spear to pay less for Long St building
Western Cape-focused Spear Reit will acquire from Capital Propfund a slice of Cape Town’s Long Street for less
Spear Reit, the first Western Cape region-specific property fund to list on the JSE, has announced that the purchase consideration for the acquisition of 2 Long Street, Cape Town, had been reduced to R389m.On March 3, Spear advised shareholders that it had, through its Spear One subsidiary, entered into an agreement with Capital Propfund 1 to acquire, as a going concern, the letting enterprise operated on the office property on Erf 9363 Cape Town, situated at 2 Long Street.Spear would hold a 70% interest in Spear One, with the balance being held by acquisition partners. The 30% interest that would be held by the acquisition partners would be funded by Spear at the going prime interest rate plus two percentage points.Spear, led by Cape property expert Mike Flax, listed on AltX in November. The relatively small real estate investment trust (Reit) has assets worth about R1.6bn and a market capitalisation of about R962m.Flax said that Spear would appeal to people who were seeking to inv...