Development-focused investment fund Pivotal grew its net asset value per share (NAVPS), excluding deferred tax, by 26% year-on-year to R19.60 in the six months to August 31.

The JSE-listed company attributed the growth to the revaluation of its income-producing properties and fair value adjustments on current developments, including the impact of the margin between the development cost and the fair value of the completed properties.

Growth was further driven by net working capital generated from operating activities, as well as positive fair value adjustments on financial instruments of R73.9-million and a gain on foreign currency translation of R65.8-million.

PROPERTY DEVELOPMENTS
During the six months under review, Pivotal acquired properties to the value of R459-million. This included the acquisition of strategic land for development.

This brought the fund’s portfolio to R10.8-billion at end-August.

Marking its first international acquisition, Pivotal also invested $104-million in the 27 000 m2 Wings office development, in Lagos, Nigeria.

The 37.1% shareholding was acquired through Pivotal incorporating a wholly-owned Mauritian entity, SB Wings Development, which held the  issued share capital of Oando Wings Development, in Nigeria.

The agreement became unconditional on July 15.

Speaking to Engineering News Online, Pivotal CEO Jackie van Niekerk noted that the opportunity for the acquisition arose when the company acquired a property portfolio from Standard Bank prior to its listing in December 2014.

“It took us 12 months to complete the transaction and, with Nigeria being the biggest economy in Africa and our development partners, it started a strong investment combination,” she said.

Further, Van Niekerk pointed out that the fund had “quite aggressive” plans to diversify its portfolio throughout Africa, including Kenya and Mozambique.

For the remainder of the year, she highlighted that the property market would move into a consolidated basis, where big retailers and office users would consolidate office space.

“The rental outlook is pretty stable at the moment and we are not seeing too many aversions in our portfolio. We spent great capital to ensure the quality of our portfolio. Despite the tough times, it all comes down to our investment strategy,” she said.