Mitchells Plain’s Watergate Centre bought for R442m
Watergate Centre represents a scarce opportunity to acquire a cash-generative retail asset within a core Western Cape node.
Image: Supplied
The Watergate Centre in Mitchells Plain has been acquired for R442 million, at an initial yield of 8.37%.
The acquisition aligns with the company’s investment approach, said Quintin Rossi, CEO of Spear REIT Limited, commenting on the transaction.
“Watergate Centre is a well-established, high-performing asset with a strong national tenant base and consistent trading fundamentals.
“We are particularly attracted to the centre’s defensive income profile, underpinned by essential retail and daily-needs shopping, as well as its location within a densely populated and economically active catchment area,” said Rossi.
The Watergate Centre is located along the R300 and comprises approximately 19 642 m² of gross lettable area and is fully let.
The centre is anchored by national brands including Shoprite and Brights Hardware, supported by a mix of retailers such as Clicks, Pep, Ackermans, Mr Price, KFC, Capitec and Zone Fitness.
Announcing the acquisition on Friday, Spear REIT Limited said the transaction is earnings-enhancing and anticipated to transfer on or about August 1, subject to approval from the relevant competition authorities.
Following implementation of the transaction, Spear’s retail portfolio gross lettable area will increase to 100 111 m².
Retail assets under ownership will be valued at approximately R1.94 billion, representing 26% of the total portfolio value of R7.2 billion.
At the beginning of March, the Western Cape-focused real estate investment trust announced its inclusion in both the FTSE/JSE All Property Index (ALPI) and the SA REIT Index following the latest index review announced by the JSE via the stock exchange news service after market close on March 4.
Spear REIT said it expected its addition to these indices to enhance the company’s visibility among domestic and international investors, while also potentially increasing demand from index-tracking funds and institutional portfolios that may have previously been precluded from taking on benchmark positions in non-indexed funds.
In March, the SA REITs gave back their early-year gains in March, pulling back 12.3% as the geopolitical conflict in the Middle East drove oil prices higher, weakened the rand and reignited inflation concerns.
The decline left the sector down 4.3% for the first quarter of this year.
However, as the recently released March 2026 SA REIT Chart Book made it clear, the underlying fundamentals told a very different story. Rolling 12-month distribution growth improved to 9.43%, company results from the likes of Growthpoint, Hyprop and Vukile were broadly constructive, and the investable universe expanded with Dipula, Octodec and Spear joining the FTSE/JSE All Property Index and SA REIT Index.