Quintin Rossi
Spear REIT CEO
Spear REIT Limited is pleased to announce that it has successfully concluded a vendor consideration placement, securing R457.75 million in new equity.
“Spear has remained laser-focused on building a high-quality, regionally centred real estate portfolio that consistently generates sustainable cashflows and profitability. The proceeds of Spear’s vendor consideration placement will be put to work to generate a mission-statement-aligned return for all stakeholders after the implementation of the new portfolio acquisition along with seeking out attractive portfolio growth opportunities within the region,” affirms CEO of Spear REIT, Quintin Rossi.
𝐒𝐡𝐚𝐫𝐞 𝐈𝐬𝐬𝐮𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠: A total of 50,302,197 new shares will be issued at an issue price of R9.10 per share, reflecting a 1% discount to the volume-weighted average traded price over the last 30 trading days.
𝐔𝐬𝐞 𝐨𝐟 𝐏𝐫𝐨𝐜𝐞𝐞𝐝𝐬: The proceeds will be utilized to partially settle the R1.146 billion purchase consideration for acquiring the Western Cape property portfolio from Emira Property Fund. The acquisition is now expected to be completed by the end of October 2024, earlier than initially planned.
𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐀𝐬𝐬𝐞𝐭𝐬 𝐚𝐧𝐝 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨: Following the acquisition, Spear’s assets under ownership will rise to R5.3 billion, adding a diversified portfolio of 93,500 m² of high-quality industrial, medical retail, and commercial office properties in Cape Town.
𝐔𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐀𝐜𝐭𝐢𝐨𝐧𝐬: The listing and issuance of the new Spear shares are expected to commence on 23 September 2024. Post-placement, the loan-to-value (LTV) ratio is expected to be between 33% and 34%.