Spear REIT Limited – Acquires Northgate Corporate Office Park, Cape Town

Posted On Friday, 23 November 2018 12:51 Published by
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Cape Town – Spear REIT Limited  on Tuesday the 21st of November announced the acquisition of Northgate Island Corporate Office Park “Northgate Park” from Tremtrust 1 Trust comprising of 30% of block 1 and 100% of blocks 2, 3 and 4 of the property for R 313 000 000.

 NORTHGATE-ISLAND

The acquired portions comprise of 17 002m2 of high-quality gross lettable area with a parking ratio of 4 bays per 100m2.

Situated directly on the intersection of Section Street and Koeberg Road between the N1 and M5 with extremely high visibility to passing traffic, Northgate Park is an easy seven minutes drive (against traffic) from the Cape Town CBD, only 10 minutes from the Southern Suburbs and 20 minutes from the Northern Suburbs making it one of the most conveniently located Corporate Office Parks in Cape Town.

CEO Quintin Rossi said, “the acquisition is in line with our strategy to invest into high quality assets within the Western Cape that present strong and growing cash flows underpinned by high quality tenancies”.

The details regarding the property, as at the anticipated transfer date, are set out as follows:

  • Initial purchase yield – 9,45%
  • In force escalations – 8,6%
  • Weighted average lease duration – 3 years
  • Weighted average office rental per m2 – R 148/m2 excl VAT & Municipal Charges
  • Gross revenue for the 12-month period ending 29 February 2020 – R 36 024 070

CEO Quintin Rossi said, “as can be seen from the Northgate Park acquisition we remain focused on growing Spear’s cashflows and to consistently grow Spear’s distribution per share ahead of inflation by acquiring assets that are accretive to the bottom line in addition to assets that improve the overall quality and net income of the portfolio”. 

Northgate Park offers high quality office space and is known in the market as a workplace with a purpose and a vision. Some of the most distinctive features of this world class property include:

  • An urban park recreation area;
  • Flowing & expansive common engagement spaces;
  • Direct access to N1 & M5 highways;
  • Close proximity to all forms of public transport;
  • Ample secure parking available on site;
  • Uninterrupted Table Mountain view’s;
  • 24 Hour security & access control.

To name a few high-profile blue-chip companies that call Northgate Park home are Weylandts Head Office, Wi-Group HQ, Vida e Caffe Head Office together with a myriad of other equally high-quality tenancies who have acknowledged the value of the location and work environment.

Post the Northgate Park acquisition Spear has added in excess of R 710m of new acquisitions to the Western Cape-focused company’s portfolio on a year to date basis with asset value increasing to R 3.73 billion on transfer of ownership of Northgate Park.

Rossi concludes that “Spear remains well placed to successfully navigate the challenging economic climate and management is confident that its active asset management, proximity to its assets and tenant centric approach will continue to yield great results for the Company”.

 

 

Last modified on Friday, 23 November 2018 13:07

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