Spearhead CEO Mike Flax said the office tower was anchored by Vodacom, which occupied 85% of the space. Spearhead had made the acquisition to "further enhance" its Cape Town property portfolio.

It would also boost the property portfolio to more than R1bn. "It is in a high-growth part of Cape in the Convention Centre Power Station precinct," said Flax.

The acquisition will also increase Spearhead’s office property exposure to about 45% of the portfolio.

Industrial property makes up about 35% of the portfolio, the rest being retail. "We are bullish about the office market in Cape Town. There is increasing demand for space. We also believe there is a shortage of good quality A-grade space," said Flax.

He said it was an "expensive buy", but that Spearhead was buying "an A-grade" building that would have consistent returns over the years. Spearhead was buying the property from Pier Place.

It would settle the acquisition price with a small cash component of R15,96m, while R136,84m would be settled by the issue of 6,22-million new Spearhead linked units to be issued at R22 a unit.

Spearhead said a circular, containing details of the acquisition and an independent professional expert’s opinion, would be posted to unitholders in due course.