Roy Cokayne
PIVOTAL Property Fund, the development fund that is planning to list on the JSE, has acquired strategic land and property assets valued at more than R1.5 billion from Standard Bank, including the majority stake in Sandton’s landmark Alice Lane development.
Jackie van Niekerk, the managing director of Pivotal, said the land and property assets acquired would be valued at more than R3.5bn when fully developed. The assets also expanded the fund’s portfolio by more than 25 000m² of bulk and more than 72 000m² of commercial space.
“This major deal moves us closer to our goal of listing on the JSE’s main board with a portfolio in excess of R9bn,” she said.
Pivotal, a public unlisted company, was established in 2005 by property developer Abland and its partners for property developments and strategic pipeline acquisitions.
The fund already owned 30 percent of the Alice Lane office development in Sandton’s central business district. It acquired the remaining 70 percent stake as part of the Standard Bank deal to become sole owner of this premium grade office complex.
Phase one of Alice Lane, comprising a gross rentable area of almost 19 000m², was completed in September last year and its blue chip tenants include Marsh, Virgin Active, Bloomberg and Standard Bank.
The 16 000m² second phase is scheduled for completion in November and will be tenanted by financial services group Sanlam and insurance company Santam.
Phase three comprises a total of 35 000m², of which 22 000m² will be occupied by law firm Bowman Gilfillan. It is scheduled for completion in November 2016.
Other high-profile properties acquired in the Standard Bank transaction include the 32 305m² Platinum Square shopping centre in Rustenburg; Lakeview Office Park in Roodepoort; Monte Circle Office Park development land in Fourways; and the West End Office Park development in Centurion.
Van Niekerk said Pivotal had delivered a consistent high growth rate to date, with a 45 percent increase in net asset value a share growth achieved in its 2014 financial year and compounded annual net asset value growth of 24 percent since 2009.