29-07-2025
Wynberg's Maynard Mall acquired for R455 million, expanding Cape Town's retail landscape
The 25,969m² Maynard Mall, a convenience shopping centre located in Wynberg, Cape Town, has been acquired for R455 million.
This transaction is said to reinforce South Africa's only regionally focused REIT's hyper-local investment strategy, targeting high-growth nodes across the Western Cape.
Maynard Mall, a 25,969m² convenience shopping centre located in Wynberg, Cape Town, has been acquired by Spear REIT Limited for R455 million.
'This acquisition is a pivotal extension of our retail footprint in Cape Town's established Wynberg node,' said Quintin Rossi, CEO of Spear REIT.
'It deepens our exposure to resilient consumer retail trade and enhances our income stability profile, supported by a weighted average lease expiry of 57 months.'
The acquisition was described as aligning with Spear's objective to grow its portfolio of well-located, high-quality convenience retail assets within the Western Cape.
Maynard Mall, centrally located in Wynberg, Cape Town, is a convenience-oriented community shopping centre anchored by Shoprite, with a strong tenant mix comprising 70% national retailers, including Ackermans, Absa Bank, Clicks, Capitec Bank, KFC, Hungry Lion, Nedbank, Pep, Sportscene and Zone Fitness, as well as essential services such as the Department of Home Affairs and local traders.
The centre caters to both daily and weekly shopping needs, drawing from a broad residential catchment area and the commuter market, with an annualised footfall of 6 million shoppers.
The anticipated transfer date is 1 January 2026, with the acquisition being funded through a combination of cash from Spear's recent R 749 million capital raise and secured debt facilities.
The transaction is expected to deliver an initial yield of 9.55%, with an additional R20 million allocated for medium-term capital expenditures.
Spear said it has identified asset enhancement capital expenditure measures of up to R20 million to be carried out over a three- to five-year period to enhance the value proposition of Maynard Mall.
These items include the potential increase in the self-storage offering, future expansion of the PV solar installation, modernisation of selected lifts, escalators, HVAC equipment and mechanical installations.
Assuming the full asset enhancement capital expenditure is accounted for on the transfer date, the post capex, stabilised yield would be 9.15% - 9.3%.
'Spear has actively pursued growth opportunities in Cape Town's convenience retail sector, on terms that aligned with its strategic and financial criteria; requiring management to remain patient, selective, and firmly committed to its investment strategy,' Rossi said.
'Today's announcement gives credence to our approach.'
