Pivotal Property Fund prepares for JSE listing

Pivotal Property Fund MD, Jackie van Niekerk said the listing will provide the company with access to equity funding to continue pursuing both development and acquisition growth opportunities.

Pivotal Property Fund, whose portfolio valued in excess of R9.2 billion, today said it was going ahead with its intended listing on the JSE Securities Exchange in December.

The company will undertake an equity capital raising of about R1 billion in a pre-listing private placement. The proceeds will be partly used to finance the R1.5bn acquisition of the Alice Lane development from Standard Bank and to reduce debt.

The counter’s market capitalisation is expected to be around R4.8 billion.

“The listing will provide the company with access to equity funding to continue pursuing both development and acquisition growth opportunities while also providing investors with access to an A-grade portfolio,” says Pivotal Managing Director, Jackie van Niekerk.

Established in 2005 by property developer Abland and its partners, Pivotal's portfolio comprise 33 retail and office properties, strategic land holdings near various Gautrain stations in Johannesburg and Pretoria, and an extensive development pipeline.

The portfolio includes, Centurion Lifestyle Centre, a 40% stake in Cradlestone Mall, the Wonderboom Junction shopping centre, Goldfields Mall, Ballyoaks Office Park, Stoneridge Office Park and several nearby office buildings in Modderfontein.

Pivotal achieved growth in net asset value per share of 45% for its financial year ended 28 February 2014, and has delivered a compounded annual growth rate in net asset value per share of 24% since 2009.

The company is internally managed with Van Niekerk leading the team since 2009. She is joined by Suckerman 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 team also comprise eight non-executive directors, of which five are independent. Tom Wixley, 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.

Pivotal will become the new property company to list this year, shortly after the JSE entry of Delta International Property, Equites Property Fund, Freedom Property Fund, Visual International Holdings, Safari Investments and Atlantic Leaf Properties.

Analyst Comment

Stanlib Head of listed property funds, Keillen Ndlovu says the listing of Pivotal Property Fund has been talked about for a while and it’s finally happening. 

"A listing of a portfolio with its critical mass and calibre is hard to come by," he said.

Ndlovu says the Fund has the benefit of being able to access strategic land and property assets from Standard Bank. In addition, it is able to access a strong pipeline from Abland, who are astute office developers.

"Pivotal will follow Attacq’s investment philosophy and focus on capital growth. It seems like the market is starting to have an appetite for development funds as compared to the traditional REIT funds," concludes Ndlovu.