Spear REIT secures R1bn in oversubscribed capital raise

Stephen Grootes speaks to Quintin Rossi, Spear CEO after the company raised R1 billion through an oversubscribed accelerated bookbuild. The capital raise, completed at a slight premium, signals strong investor appetite for Western Cape-focused property exposure.

Listen to the interview in the audio player below. 

Spear REIT has successfully raised R1 billion through an oversubscribed accelerated bookbuild, underlining strong investor confidence in its Western Cape-focused property strategy.

The capital raise was completed at a slight premium to the company’s recent trading price, a notable outcome in a listed property sector that has faced pressure from higher interest rates and subdued economic growth.

Oversubscription means demand for shares exceeded the number available, suggesting investors were eager to increase their exposure to the fund.

CEO Quintin Rossi described the outcome as a clear signal that the market continues to favour regionally focused, well-managed real estate portfolios, particularly those concentrated in the Western Cape.

Speaking to Stephen Grootes on The Money Show, Rossi says their regionally focused model gives them an edge within the industry.

"Real estate investors that are seeking an entry point into listed real estate without the hassles of being exposed to other municipalities which are potentially falling apart and failing, and solely wanting to invest in the Western Cape from a real estate perspective, we are that solution for investors."

- Quintin Rossi, CEO - Spear

"100,000-150,000 people move to the Western Cape on an annualised basis. Those people need to live somewhere, so there is a huge momentum in the residential sector." 

- Quintin Rossi, CEO - Spear

"You've seen the office market in Cape Town, in particular has magnificently outperformed the rest of the country with office vacancies at its lowest since the previous pandemic."

- Quintin Rossi, CEO - Spear

Scroll to the top of the article to listen to the full interview.