SPEAR REIT LIMITED - Vendor Consideration Placement And New Acquisition

Vendor Consideration Placement And New Acquisition

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”)

VENDOR CONSIDERATION PLACEMENT AND NEW ACQUISITION

Vendor consideration placement

Spear is pleased to announce that it has successfully completed a vendor consideration
placement and has received commitments to subscribe for R253.9 million of new equity.

In terms of the vendor consideration placement, a total of 30 230 819 new shares will be issued
at a price of R8.40 per share, reflecting a premium of 0.13% to the volume weighted average
price over the 30 trading days up to and including Friday, 28 January 2022.

Spear’s recent strong share price growth has presented the Company with a favourable
opportunity to implement the placement, the proceeds of which will be utilised to fund the new
acquisition of 27 Junction Road (as defined below) and to settle debt incurred by Spear in
respect of various previous acquisitions, as contemplated at the time of those acquisitions and
in step with the approach followed by Spear in the past. It is also in line with Management’s
loan-to-value (“LTV”) reduction roadmap set out to the market. Post the vendor consideration
placement and post the completion of the UES Hotel (Pty) Ltd sale of shares, Spear’s portfolio
LTV will be within a range of 38.5% - 39.5% at year-end without accounting for fair value
adjustments.

It is anticipated that the listing and issue of the new Spear shares will commence at 09:00 a.m.
on Friday, 4 February 2022.

Acquisition of 27 Junction Road

The Company is currently considering various growth opportunities. In this regard,
shareholders are advised that Spear recently entered into an agreement to acquire the property
situated at 27 Junction Road, Parow, Cape Town and its associated rental enterprise for an
aggregate purchase consideration and associated transaction costs of R65 million. All
suspensive conditions to this acquisition have been fulfilled and it is expected that the
acquisition will be implemented during or about April 2022.

In line with Spear’s growth strategy, the 27 Junction Road acquisition is a 11 500 m2 industrial
property built on 2,4 hectare erven. The property is located in the highly desirable industrial
node of Parow Industria. The usage of the property will be for logistics, assembly and bulk
storage.

The new acquisition will add new long-dated income to the Spear portfolio, in addition to
contributing meaningfully to group earnings going forward as the acquisition is accretive from
the transfer date.

Based on its purchase consideration, the acquisition of 27 Junction Road is uncategorised in
terms of the JSE Listings Requirements and the above information relating to this acquisition
is accordingly disclosed on a voluntary basis.

Cape Town
31 January 2022

Corporate advisor and sponsor
PSG Capital

Date: 31-01-2022 11:45:00
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