SPEAR REIT LIMITED – Voluntary Announcement – ​​Sale of 8 Section Street – SENS

                            

Voluntary Announcement – Disposal of 8 Section Street

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 8 SECTION STREET

Shareholders are hereby advised that on 11 April 2022, Spear entered into a sale of letting
enterprise agreement (“Agreement”) with Snow Storm Investments Proprietary Limited
(“Purchaser”), in terms of which Spear will sell the immovable property known as Erf 17611
Cape Town, situated at 8 Section Street, Paarden Eiland (“Property”) and the letting
enterprise conducted by it on such Property, to the Purchaser for a gross purchase
consideration of R22,500,000 (“Disposal”).

Shareholders are further advised that the Agreement does not contain any conditions
precedent and that the Disposal is accordingly unconditional. The anticipated date of transfer
of the Property is July 2022.

The Disposal is in line with Spear’s loan-to-value (“LTV”) reduction roadmap set out to the
market as the strategic objective is to reduce the Spear group LTV to a range of between 38%
and 43%. The Disposal will further reduce group LTV by 30 bps. Post the finalisation of the
Disposal, the forecasted Spear group LTV will be between 38,5% and 39,5%.

The Disposal has been concluded at a 7.56% net premium to Spear’s latest reported book
value of the asset after deducting all transaction costs associated with the Disposal. The
Disposal reinforces the conservative nature of Spear’s portfolio valuations and gives further
credence to overall portfolio valuations.

The disposal of this non-core asset further aligns with Spear’s strategy of prudently recycling
capital invested in office assets, into strategically located industrial and convenience retail
opportunities in the Western Cape, with values exceeding the minimum investment criteria
threshold of R100,000,000.

The Disposal is uncategorised in terms of the JSE Limited Listings Requirements, and the
information contained in this announcement has been voluntarily disclosed by the Company.

Cape Town
14 April 2022

Sponsor
PSG Capital

Date: 14-04-2022 04:00:00
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