The Pivotal Fund Limited’s CEO, Jackie van Niekerk, speaking at the JSE this morning (08 December 2014) as it listed on the Main Board.
The Pivotal Fund Limited, a property investment and development capital growth fund, today listed on the Main Board of the JSE, under the Real Estate – Real Estate Holdings and Development sector.
Before listing Pivotal successfully raised R1 billion through a heavily oversubscribed private placement, enabling it to list with a market capitalisation of around R5 billion, with a sizeable R9 billion portfolio of top-quality property assets and developments.
Pivotal CEO, Jackie van Niekerk, comments: “We are delighted to take Pivotal into a bright future with its listing on the JSE Main Board. Listing Pivotal provides an opportunity for investors to share in the sustainable benefits of capital growth from an A-grade portfolio with superior returns over the long term, delivered by a leading fund with a successful track record. Our significantly oversubscribed private placement shows a robust appetite in the market for the distinct benefits of an investment in Pivotal.”
She adds: “Pivotal’s listing has created a solid foundation for growth. We are confident it will strengthen our prospects and profile. It unlocks access to equity funding to continue development and acquisition growth and take advantage of opportunities in the market. It also increases the liquidity of our shares and broadens our shareholder base. All this strongly positions Pivotal to continue to generate attractive returns for investors.”
Pivotal was established in 2005 as the property holding entity for leading South African property developer and manager Abland, and has delivered a compounded annual growth rate in net asset value per share of 24% since 2009, when Pivotal became publically traded in the over-the-counter market.
It now has an A-grade office and retail property portfolio. This is divided into completed income-producing properties and developments, which include current developments and future developments. Pivotal’s R9 billion property assets comprise an income-producing portfolio valued at around R7,8 billion and a strategic development portfolio presently valued at R1.2 billion, but ultimately expected to be valued at around R6 billion when developed. Its development portfolio at listing alone is set to increase the value of Pivotal’s assets to more than R14 billion.
Pivotal strategically invests in well located, prime A-grade commercial, industrial and retail property assets. Its diversified income-producing asset base comprises 33 well-established, high-quality properties. This strong portfolio is 98.5% let and is 80% occupied by A-grade tenants.
Its strategic partnership with Abland, as well as other developers, ensures Pivotal has a continuous pipeline of high quality, value-adding development opportunities.
Van Niekerk explains: “Investment in excellent development opportunities is key to Pivotal’s strategy and optimises our strategic access to deal flows from Abland and other partners. Our strategic development portfolio includes landmark projects in South Africa’s strongest commercial nodes, as well as a pipeline of future developments, which are well suited to grow its development portfolio.”
Pivotal’s investment strategy, and its JSE listing, shows confidence in South Africa’s property prospects. While it is considering opportunities in several other African countries, South Africa will remain Pivotal’s core investment market.
Pivotal is an internally managed property fund and benefits from a board with proven delivery that is steeped in property expertise. As CEO, van Niekerk leads the executive team and is joined by Financial Director Aaron Suckerman and Executive Director, Dave Savage. The company’s eight non-executive directors, of which five are independent, bring a wealth of experience and know-how to Pivotal’s board. They are Marc Wainer, Thando Sishuba, Tony Dixon, Chris Ewing, Thys Neser, Stewart Shaw-Taylor and Angus Mackay. Tom Wixley is independent non-executive chairman.
“Our JSE listing is a significant strategic milestone for Pivotal and is a culmination of much hard work invested in getting us to this position,” says van Niekerk. “We are optimistic about the property sector and its opportunities, as well as Pivotal’s strong growth prospects.”