Spear REIT Acquires Watergate Centre in Mitchells Plain for R442 Million

Spear REIT Limited has acquired the Watergate Centre in Mitchells Plain, Cape Town, for R442 million in a significant retail property transaction announced on April 17, 2026.

The acquisition, confirmed through multiple verified sources, includes approximately 19,642 square metres of gross lettable area and is fully let with national retailers such as Shoprite, Brights Hardware, Clicks, Pep, Ackermans, Mr Price, KFC, Capitec and Zone Fitness serving as anchor and supporting tenants.

Watergate Centre is a well-established, high-performing asset with a strong national tenant base and consistent trading fundamentals

Quintin Rossi, Chief Executive Officer of Spear REIT Limited

The transaction reflects an initial yield of 8.37% and a weighted average rental escalation of 6.70%, according to Spear REIT’s official announcement. The property is described as a convenience-focused shopping centre located along the R300 highway, serving the high-density residential areas of Mitchells Plain.

Spear REIT stated that the acquisition is earnings enhancing and is anticipated to transfer on or about August 1, 2026, subject to approval from the relevant competition authorities. The deal forms part of the company’s strategy to expand its Western Cape retail portfolio with cash-generative assets in core nodes.

Watergate Centre represents a scarce opportunity to acquire a cash-generative retail asset within a core Western Cape node. Its convenience-driven positioning, strong trading densities and limited competing retail offerings reinforce its role as a primary retail destination within its catchment.

Spear REIT Limited

The retail offering at Watergate Centre is weighted towards established national operators, which account for the majority of rental income and maintain consistent footfall driven by daily-needs shopping. This characteristic was cited by Spear REIT management as a key factor in the investment decision, aligning with the company’s focus on assets with reliable and predictable income streams.

The acquisition reflects an initial yield of 8.37% and a weighted average rental escalation of 6.70%.

Spear REIT Limited

The Watergate Centre acquisition marks a notable expansion of Spear REIT’s presence in the Western Cape retail sector, adding a fully let, high-traffic convenience centre to its portfolio. The transaction was reported by multiple business and property news outlets on April 17, 2026, confirming the R442 million valuation and key operational details of the property.