Jackie van Niekerk, CEO of The Pivotal Fund Limited, which will list on the main board of the JSE on Monday, 08 December, 2014
The Pivotal Fund Limited’s highly anticipated listing on the main board of the JSE has been confirmed for Monday, 08 December 2014, following the conclusion of a successful and heavily oversubscribed capital raising.
Pivotal will debut on the JSE as a capital growth and development fund with a market capitalisation of around R5 billion. It will trade under “Real Estate – Real Estate Holdings and Development” sector and with the share code “PIV”.
Ahead of its JSE-listing, Pivotal undertook an equity capital raising of up to R1 billion by way of a private placement.
“The fact that our capital raising was so heavily oversubscribed illustrates investor confidence in Pivotal’s portfolio and the group’s development pipeline,” comments Pivotal’s Chief Executive Officer, Jackie van Niekerk.
Pivotal 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. The property fund focuses on creating sustainable value for its investors by achieving above average growth in the capital value of its portfolio.
Pivotal’s portfolio of income producing properties is currently valued at approximately R7.8 billion. The company focuses on enhancing the value of these properties through constant maintenance and upgrades, an optimal tenant mix and maintaining low vacancy levels.
“The income generated from income producing properties is re-invested into value-enhancing property upgrades, acquisitions and developments. Given that the majority of its income is intended for re-investment, Pivotal’s current dividend policy is not to make any distributions to shareholders,” explains van Niekerk.
“Pivotal offers a capital growth investment proposition with its A-grade portfolio of income producing property assets and an excellent development pipeline of prime projects. Pivotal will list on 08 December with a total property portfolio valued at R9 billion,” she adds.
The company’s strategic partnership with leading South African property developer and manager Abland, as well as other developers, will ensure a continuous pipeline of high quality, value-adding development opportunities in South Africa and the rest of Africa.
Van Niekerk comments: “The listing of Pivotal on the JSE was a longer term goal, but we brought it forward to this year to take advantage of opportunities in the market and our strategic partnerships. While South Africa is our core market, we are looking at several projects in other parts of Africa.
“The listing will provide Pivotal with access to equity funding to continue pursuing both development and acquisition growth opportunities. It will also provide investors with access to an A-grade development portfolio with superior returns over the long term.”
Key to Pivotal’s strategy is its investment criteria of well located, prime A-grade commercial, industrial and retail properties. It has concluded acquisitions valued at R3.5 billion, ahead of its listing. This includes a deal with Standard Bank, consisting of strategic land and property assets including the majority stake in the flagship Alice Lane development in Sandton.
Pivotal is an internally managed property fund and benefits from a board steeped in property expertise. Van Niekerk leads the executive team as Chief Executive Officer and has played a key role in Pivotal since 2009. She is joined by Aaron Suckerman, Pivotal’s Financial Director, and Executive Director, Dave Savage, of Abland who has a career spanning more than 25 years. Savage is also a co-founder of Pivotal.
The company’s eight non-executive directors, of which five are independent, bring a wealth of knowledge and experience to its board. Tom Wixley is independent non-executive chairman. Marc Wainer, Thando Sishuba, Tony Dixon, Chris Ewing, Abland co-founder Thys Neser, Stewart Shaw-Taylor and Angus Mackay are among the other non-executive directors.