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Voluntary Announcement: Disposal Of Hamilton & Chiappini House
SPEAR REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/407237/06)
Share Code: SEA
ISIN: ZAE000228995
LEI: 378900F76170CCB33C50
Approved as a REIT by the JSE
("Spear" or "the Company")
VOLUNTARY ANNOUNCEMENT: DISPOSAL OF HAMILTON & CHIAPPINI HOUSE
1. DETAILS OF DISPOSAL
Shareholders are advised that Spear entered into a sale of rental enterprise agreement ("Agreement"),
in terms of which Spear will dispose of the rental enterprise "Hamilton House" located on Erven 568 and
569 Cape Town, situated at 30 Waterkant Street, De Waterkant, Cape Town and the rental enterprise
"Chiappini House" located on Erven 571 and 583 Cape Town, situated at 26 Chiappini Street, De
Waterkant, Cape Town (collectively "the Properties"), as going concerns ("Disposal").
The consideration payable for the Properties in terms of the Disposal ("Disposal Consideration") is
R100,000,000, escalating by 0.5% per month from 1 April 2025 to the date of registration of the transfer
of the Properties. Accordingly, as at the date of this announcement, the Disposal Consideration is equal
to approximately R107,000,000.
The Properties were acquired by Spear in October 2024, as part of the Category 1 Acquisition of the
Western Cape property portfolio of Emira Property Fund Limited, for an aggregate purchase consideration
of R80,750,000.
The Disposal was subject to certain conditions precedent, including the approval of the applicable
competition authorities in terms of the Competition Act ("Competition Authorities"). Shareholders are
advised that on 11 May 2026, the Competition Authorities approved the Disposal and given that all the
conditions precedent have now been fulfilled, the Disposal has become unconditional.
2. RATIONALE FOR THE DISPOSAL
The Disposal aligns with Spear's capital recycling strategy when clear shareholder value unlock
opportunities occur. Management remains entrepreneurial in the hands-on management of the core
portfolio and seeks to exit non-core assets creating redeployment capital into scalable, higher-yielding
Western Cape investment opportunities aligned with Spear's investment strategy.
The Properties were identified as non-core assets located within an increasingly residential and
redevelopment-focused precinct, where the long-term highest and best use lay in the redevelopment of
the Properties which on a stand-alone basis diverged from Spear's income-focused strategy but created
a clear and actionable value unlock opportunity.
The Disposal enables Spear to crystallise value at a premium to the original acquisition price within a
relatively short holding period and supported by a disposal yield of 7.5%. The Disposal further reduces
Spears exposure to smaller, decentralised office assets and therefore simplifying overall portfolio
composition in line with management strategy. The upliftment in value of approximately R26,000,000 from
the purchase consideration, added 5 cents to Spear's net asset value since acquisition of the Properties.
The Disposal supports Spear's strategy of active asset management through unlocking embedded value
without taking redevelopment risk whilst maintaining a disciplined capital allocation and asset recycling
strategy into defensive, scalable industrial, convenience retail and institutional-grade commercial assets
within the Western Cape that offer strategy aligned long-term earnings resilience and growth potential.
3. CLASSIFICATION OF THE DISPOSAL
The Disposal Consideration represented less than 5% of Spear's market capitalisation as at the signature
date of the Agreement and accordingly the Disposal is uncategorised in terms of the JSE Listings
Requirements. The information contained in this announcement has been voluntarily disclosed by Spear.
Cape Town
12 May 2026
Sponsor and Transaction Advisor Legal Advisor
PSG Capital ENSafrica
Date: 12-05-2026 09:50:00
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