Spear REIT invests $6 million in Mambos’ Cape Town distribution centre

South African real estate investment trust Spear REIT is investing approximately R90 million ($6 million) to develop a 7,150-square-metre national distribution centre for Mambos Storage & Home in Blackheath, Cape Town. The project strengthens Spear REIT’s industrial property portfolio while giving Mambos a larger logistics base to support its growing retail and wholesale operations.

The purpose-built facility will house Mambos’ head office and supply chain operations, giving the retailer additional warehousing capacity as it expands its store network across South Africa. Construction began on August 1, 2026, with completion expected in mid-2027.

Spear REIT invests $5.55 million

The new Mambos distribution centre forms part of Spear REIT’s active asset-management strategy and is being developed under a long-term agreement between the property company and Mambos Storage & Home. Spear expects development costs to total approximately R90 million ($5.5 million), making the project a significant investment in its Western Cape industrial property portfolio.

The facility will provide Mambos with additional warehousing capacity, improved logistics functionality and upgraded operational infrastructure as the retailer expands its national business.

James Bylos, Head of Leasing at Spear REIT, said the development reflects the value of the companies’ longstanding relationship and Spear’s approach of adapting its properties to meet tenants’ changing operational requirements. The project will allow Mambos to move from its existing Spear property solution into a larger purpose-built facility designed around its current and future operational needs.

Mambos expands its logistics network

Mambos Storage & Home is a South African retailer and wholesale distributor specialising in storage, homeware and related lifestyle products. The company currently operates 22 stores nationwide and is pursuing further expansion of its retail footprint.

The new distribution centre is expected to support that growth by increasing storage capacity and improving the movement of products through Mambos’ national supply chain.

The facility will also accommodate the retailer’s head office, bringing its corporate and supply chain operations together at a purpose-built location in Blackheath. For Mambos, the development provides additional capacity to handle higher volumes and support future growth without relying on its existing property solution.

For Spear REIT, the project deepens its relationship with an established tenant while creating an opportunity to generate additional value from its industrial property portfolio.

Blackheath attracts industrial demand

The Mambos development comes as Blackheath continues to strengthen its position as an industrial, logistics and warehousing location in the Western Cape.

The Cape Town precinct provides access to major transport routes and is relatively close to Cape Town International Airport, supporting its appeal to businesses requiring efficient distribution networks.

Limited availability of appropriately zoned land and quality industrial stock has also contributed to occupier demand in the broader industrial property market.

Quintin Rossi, CEO of Spear REIT, said the new facility is expected to act as a growth accelerator for Mambos while strengthening Spear’s regional portfolio and long-term income base.

The project therefore provides a dual benefit for the property company: supporting tenant expansion while adding a purpose-built industrial asset to its Western Cape portfolio.

New facility supports national growth

Construction of the 7,150-square-metre Mambos distribution centre started on August 1, 2026, with completion expected in mid-2027. Once completed, the facility will serve as Mambos’ new national distribution centre and head office, supporting its expanding retail and wholesale operations across South Africa.

Spear REIT said the development forms part of its broader strategy of unlocking embedded value in an earnings-positive manner while improving the quality of its regional portfolio and maintaining sustainable long-term income streams. The investment also highlights the role of industrial property in supporting the expansion of South African retailers, particularly businesses requiring larger distribution networks as they increase their store footprints.

For Mambos, the Blackheath facility is expected to provide the logistics capacity needed for its next phase of growth. For Spear REIT, the development adds a new industrial asset while strengthening a long-term tenant relationship.