Spear maintains buying energy
CEO Mike Flax says the acquisition is in line with Spear’s strategy to invest into high-quality assets in the Western Cape
Spear Reit, the AltX-listed Western Cape region-specific property group, is set to acquire the five-star 15 on Orange Hotel in Cape Town and certain retail sections for nearly R300m, as it looks to continue its aggressive acquisition strategy since listing late in 2016. CEO Mike Flax said the acquisition was in line with Spear’s strategy to invest into high-quality assets in the Western Cape and to increase its exposure to Cape Town’s hospitality sector, which continued to perform strongly given a healthy tourism market. "This hotel has performed very well in the past couple of years having been built about four years ago. "There is a 15-year management contract in place with Marriott International and we feel that we are acquiring an excellent asset for our portfolio. The deal also includes convenience retail assets," said Flax. Spear entered into a subscription agreement and a share purchase agreement to subscribe for and acquire 100% of the share capital of Blend Property 15 from...