Spear REIT has announced the acquisition of the Berg River Business Park, a 30,000m² multi-let industrial park in Paarl, Western Cape.
The acquisition value is recorded at R182,150,000, with an initial yield to the Spear platform of 9.35%. The transaction will be settled via a Section 42 asset-for-share arrangement, with the sellers receiving the full value of their equity in Spear shares.
Located at 46 Distillery Street, along the Berg River in the Drakenstein Municipality, the Berg River Business Park serves a mix of tenants across the food, agriculture, wine, and clothing sectors. The area forms part of a growing industrial node in the Western Cape and benefits from its proximity to the N1 highway, enhancing logistical efficiency for its tenants.
Key Features of Berg River Business Park:
- Strategic Access: Proximity to major routes, including Lady Grey Street and the N1 highway.
- Security Infrastructure: The park features 24-hour security, CCTV surveillance, and electric fencing.
- Energy Efficiency: This includes solar power generation capacity, reducing energy costs, and reducing environmental impact.
- Operational Resilience: Offers a power supply capacity of 3,500 kVA and full load-shedding redundancy.
- Connectivity: Equipped with high-capacity fibre-optic infrastructure.
- Flexible Industrial Space: Units designed with high clearance, modern amenities, and ample yard areas to support various operational requirements.
Commenting on the acquisition, Quintin Rossi, CEO of Spear REIT, said: “One of the advantages of Spear’s Western Cape focus is that the entire province presents investment opportunities. This high-quality acquisition marks our entry into the Paarl real estate market and our first investment in the well-established industrial node of Paarl Industrial. We are very pleased with the asset type, the tenant mix, and the solid rental growth prospects that this food and agri-logistics park brings to the core Spear portfolio.”
The acquisition marks Spear’s continued strategy to grow its portfolio in high-performing nodes across the Western Cape, with a particular focus on assets that offer income resilience and long-term capital appreciation potential.