{"id":857522,"date":"2026-04-17T14:30:00","date_gmt":"2026-04-17T12:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=857522"},"modified":"2026-04-17T14:00:33","modified_gmt":"2026-04-17T12:00:33","slug":"popular-shopping-mall-in-south-africa-sold-for-r442-million","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/857522\/popular-shopping-mall-in-south-africa-sold-for-r442-million\/","title":{"rendered":"Popular shopping mall in South Africa sold for R442 million"},"content":{"rendered":"\n

Spear REIT is acquiring Watergate Centre in Mitchells Plain, Cape Town, from MPW Cape Properties for R442 million. <\/p>\n\n\n\n

The JSE-listed company said the deal forms part of Spear’s strategy to acquire well-located, convenience-led retail assets in the Western Cape that deliver stable, sustainable income.<\/p>\n\n\n\n

The company said that the Watergate convenience-oriented shopping centre is strategically located on key arterial routes along the R300, serving Mitchells Plain and the surrounding catchment areas. <\/p>\n\n\n\n

The centre has 19,642 sqm of gross lettable area (GLA), anchored by Shoprite and Brights Hardware. Other tenants include Clicks, Pep, Ackermans, Mr Price, KFC, Capitec and Zone Fitness. <\/p>\n\n\n\n

Spear said that the value-focused tenant mix underpins the Centre’s consistent footfall and daily needs trading.<\/p>\n\n\n\n

It said that the centre serves a high-density catchment area with strong consumer spending power and limited competing convenience retail offerings. <\/p>\n\n\n\n

It added that the centre’s income is underpinned by strong grocery and food trading, with national tenants accounting for the majority of gross rental income, supporting a sustainable income profile. <\/p>\n\n\n\n

With the centre fully let, Spear said it generates immediate, high-quality cash flows. <\/p>\n\n\n\n

“The centre represents a scarce opportunity to acquire a cash-generative, defensive retail asset with durable income characteristics and identifiable asset management upside within a core Western Cape node.” <\/p>\n\n\n\n

The purchase consideration is R442 million, and is exclusive of VAT. If the deal is delayed beyond 1 September, Spear will need to pay interest of 0.5% per month.<\/p>\n\n\n\n

The deal will go through as soon as possible after the conditions precedent are fulfilled, which is anticipated to be on 1 August 2026. <\/p>\n\n\n\n

For the forecasted 7 months ending 28 February 2027, the mall is expected to record R37.5 million in rental income. Its distributable profit is expected to reach R833,000 in the seven-month period.<\/p>\n\n\n\n

For the year ending 28 February 2028, Spear expects rental income of R67.1 million and distributable profit of R2.6 million. <\/p>\n\n\n\n

Watergate Centre Expectations<\/strong><\/td>Forecast for the 7-month period commencing 1 August 2026 and ending 28 February 2027 (R)<\/strong><\/td>Forecast for the 12-month period ending 28 February 2028 (R)<\/strong><\/td><\/tr><\/thead>
Rental income<\/td>37,524,632<\/td>67,099,741<\/td><\/tr>
Straight-line rental accrual<\/td>801,498<\/td>(29,786)<\/td><\/tr>
Gross income<\/strong><\/td>38,326,130<\/strong><\/td>67,069,955<\/strong><\/td><\/tr>
Property expenses<\/td>(14,984,080)<\/td>(27,184,787)<\/td><\/tr>
Net property income<\/strong><\/td>23,342,050<\/strong><\/td>39,885,168<\/strong><\/td><\/tr>
Administrative expenses<\/td>(1,125,739)<\/td>(2,012,992)<\/td><\/tr>
Operating profit<\/strong><\/td>22,216,311<\/strong><\/td>37,872,176<\/strong><\/td><\/tr>
Finance cost<\/td>(20,581,200)<\/td>(35,282,058)<\/td><\/tr>
Profit before taxation<\/strong><\/td>1,635,111<\/strong><\/td>2,590,118<\/strong><\/td><\/tr>
Taxation<\/td>–<\/td>–<\/td><\/tr>
Profit after taxation<\/strong><\/td>1,635,111<\/strong><\/td>2,590,118<\/strong><\/td><\/tr>
Adjusted For:<\/td><\/td><\/td><\/tr>
Straight-line rental accrual<\/td>(801,498)<\/td>29,786<\/td><\/tr>
Distributable profit<\/strong><\/td>833,613<\/strong><\/td>2,619,904<\/strong><\/td><\/tr>
<\/td><\/td><\/td><\/tr>
Contracted rental income %<\/td>93.06%<\/td>28.41%<\/td><\/tr>
Near Contracted rental income %<\/td>6.94%<\/td>71.59%<\/td><\/tr>
Uncontracted rental income %<\/td>0%<\/td>0%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Images of Watergate Centre <\/h2>\n\n\n
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Spear REIT is acquiring Watergate Centre in Mitchells Plain, Cape Town in a deal worth R442 million. <\/p>\n","protected":false},"author":95,"featured_media":857543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[25221,25220],"class_list":["post-857522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-spear-reit","tag-watergate-centre"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=857522"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857522\/revisions"}],"predecessor-version":[{"id":857549,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857522\/revisions\/857549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/857543"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=857522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=857522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=857522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}