The Pivotal Fund, a development focused Investment Fund, has purchased a 45% share in S&J Industrial, a 160 hectare (1.6 million m²) prime industrial parcel of land located in Germiston, Johannesburg.
This follows a Joint Venture agreement between Pivotal, Redefine Properties and Abland Proprietary Limited whereby the land will be co-owned in shares split 45%, 45% and 10% respectively. The land is earmarked for an industrial precinct and will be serviced and developed in phases based on demand.
Jackie van Niekerk, CEO of Pivotal commented: “This transaction delivers on our commitment to shareholders and is aligned with our strategy to balance our portfolio by increasing our exposure to the industrial sector.
S&J Industrial is particularly attractive due to its convenient location. The land is located at the Geldenhuys Interchange off the N3 highway and has excellent access to major arterial routes connecting Johannesburg with ports and the rest of Africa.
The development will offer a full spectrum of industrial properties and will include a conference centre as well as some convenience retail. All bulk services have been secured and we have experienced strong initial market interest.”
Abland has been appointed by the co-owners as lead development manager with respect to servicing of the land. Once serviced, the stands will either be developed for tenants, developed for sale on a turn-key basis or sold as serviced land.
Dave Savage, Executive Director of Pivotal said: “We have a thorough knowledge of this property and know how best to extract value. In conjunction with our co-owners we will harness our synergies to create an industrial precinct that will be a hub of excellence and cater for all business needs.”