In a landmark R1.5-billion deal that precedes it planned listing on the JSE, Pivotal Property Fund has acquired “strategic” land and property assets from Standard Bank Properties, which includes Sandton’s landmark Alice Lane development.

“Pivotal has acquired strategic land and property, which will be valued at more than R3.5-billion when fully developed. This major deal moves us closer to our goal of listing on the JSE’s main board with a portfolio in excess of R9-billion.

“The acquisition expands our portfolio by more than 25 000 m² of bulk and over 72 000 m² of commercial space,” MD Jackie van Niekerk said on Wednesday.

Pivotal already owned 30% of the Alice Lane office development in Sandton’s central business district and the acquisition of the remaining 70% would see it becoming the sole owner of the premium-grade office complex.

Phase 1 of Alice Lane was completed in September last year with a gross rentable area of almost 19 000 m² and blue-chip tenants including Marsh, Virgin Active, Bloomberg and Standard Bank.

Phase 2 was scheduled for completion in November this year, bringing 16 000 m² on stream for financial services group Sanlam and insurance company Santam.

Phase 3 would follow in November 2016, with total floorspace of 35 000 m², of which 22 000 m² would be occupied by Bowman Gilfillan, one of SA’s ‘big five’ legal firms.

Other high-profile properties acquired as part of the Standard Bank transaction include: the 32 305 m² Platinum Square shopping centre, in Rustenburg; the Lakeview Office Park, in Roodepoort; the Monte Circle Office Park development land, in Fourways; and the West End Office Park development, in Centurion.

As Van Niekerk pointed out, Pivotal’s investment criteria include the asset being a well located, A-grade commercial and retail property, which was assessed on a case-by-case basis.

“The fund’s performance has delivered a consistent high growth rate to date, with a 45% increase in net asset value (NAV) per share growth achieved in the 2014 fiscal year, with compounded annual NAV growth of 24% since 2009,” she explains.