Spear Reit Limited entered into a sale of rental enterprise agreement to acquire The Island Milnerton, Western Cape from Inospace 2 Proprietary Limited for SAR 185 million.

Spear Reit Limited (JSE:SEA) entered into a sale of rental enterprise agreement to acquire The Island Milnerton, Western Cape from Inospace 2 Proprietary Limited for ZAR 185 million on October 12, 2022. The Purchase Consideration will be secured by a bank guarantee and will be paid by Spear to the Inospace 2 Proprietary in cash, on the date of registration of transfer of ownership of the Property into the name of Spear. The Acquisition is subject to the fulfilment of the outstanding condition precedent that within 60 days of the Signature Date, the Acquisition has been unconditionally approved by the applicable competition authorities in terms of the Competition Act, No.

89 of 1998, or conditionally approved on conditions which are acceptable to the parties. In addition to the Purchase Consideration, the costs associated with the Acquisition are estimated at ZAR 1.5 million. Agents' commission, in the amount of ZAR 5.55 million is payable.

The closing of transaction will be done after fulfillment of all conditions or February 1, 2023. PSG Capital acted as sponsor and Cliffe Dekker Hofmeyr acted as legal advisor.