The Pivotal Fund is a property investment and development fund with a portfolio of A-grade, income-producing properties and developments, based in South Africa. The group also decided to buy a 13.1% stake in pan-African property income fund Mara Delta, as well as a 6.1% interest in Echo Polska Properties, which owns a portfolio of properties in Poland.

Pivotal’s directly-owned portfolio is valued at R11.3 billion, with the indirect property portfolio valued at R1.2 billion. 87% of the directly held portfolio is based in Gauteng, with 8.7% in the Free State and 3.8% in the Western Cape. As of August 2016, the group had a total of 38 income producing properties, 8 current development properties and 16 properties held as land available for development. Additional properties are currently being held for sale.

Pivotal Fund shares were first listed on the Johannesburg Stock Exchange (JSE) in 2014. The group today has a JSE market cap of R5.2 billion, but Pivotal share price has been unstable.

Pivotal aims to directly hold high-quality properties in South Africa, whilst also seeking exposure to other mature emerging markets. The decision to buy into Echo Polska Properties was in line with the company’s strategy of investing up to 15% in mature emerging markets, allowing for geographical and currency diversification. The purchase also allows for participation in a substantial development pipeline with a value in excess of €500 million. Meanwhile, the Mara Delta investment is forecast to provide exposure to income underpinned by US Dollar denominated long-term leases.

In its latest financial data covering the 2016 financial year, Pivotal recorded net asset value per share growth of 17.35%. The key performance drivers were identified as positive revaluations of the completed portfolio and offshore investments, and an increase in net working capital generated from operating activities. In South Africa, the group managed to buy a 20% stake in the Galleria at Rosebank, for R100 million. The intention is to redevelop this prime property with premium grade offices and luxury apartments.

Performance from income-generating properties was solid for the year, with net property income increasing by 56.6% to R739.2 million. The direct property portfolio grew from 38 properties to 63, reflecting an aggressive acquisition strategy. Profit after tax decreased from R236 million to R56 million, and translation of foreign operations resulted in an overall loss of R31 million for the period.

Pivotal Fund share price has been impacted by market uncertainty in South Africa, with investors reluctant to buy online property stocks which don’t have a long and
established history on the JSE. But the company has a very strong development pipeline which is forecast to contribute substantially to profits once completed, and the investment in Poland is well-poised for growth. The group has good rand hedge options in Mara Delta too, and most investment analysts agree that Pivotal Fund shares are an interesting and high-potential buy.

Property

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Pivotal Fund Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Pivotal Fund Holdings and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Pivotal Fund.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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