Property investor Spear Real Estate Investment Trust (Reit) has announced the sale of two large office buildings in central Cape Town as limited office space continues to drive up prices in the CBD.
The properties, now worth a combined R107m, were purchased a little more than 18 months ago for R80.75m from Emira Property Fund, another JSE-listed investor.
Spear’s Western Cape-focused strategy, which centres on high-demand office space in Cape Town’s established commercial nodes, has helped the group’s share price climb more than 30% in the past year, extending a slow and steady upward trajectory.
In the group’s latest trading update, it said that an accelerating trend of workers returning to the office as companies shift away from remote work had translated into substantial improvements in occupancy in late 2025.
The shift in Cape Town mirrors a broader, nation-wide trend. In the first three months of 2026, South Africa’s office vacancy rate eased to its lowest level since mid-2020.
Spear said the latest disposal, which became unconditional on Monday after approval by the competition authorities, allowed it to capture an attractive yield in a relatively short period of time while reducing its exposure to smaller, decentralised office assets.
The R26m profit added 5c to the company’s net asset value since acquisition, it said, while the disposal consideration represented less than 5% of its market capitalisation.
The properties include Chiappini House, a 1km² building, and Hamilton House, a 3.4km² block, both located in De Waterkant on the outskirts of the CBD.
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