Pivotal Property Fund to raise about R1bn through private placement of shares.
Category Property Fund News
Pivotal Property Fund‚ which anticipates listing on the main board of the JSE next month‚ on Tuesday announced its intention to raise approximately R1bn through the private placement of 58‚823‚529 shares at an issue price of R17 per private placement share. Pivotal said the main purpose of the private placement and the listing were to enhance the liquidity and tradability of company shares and to provide the company with a platform to raise funding to pursue growth and investment opportunities in the future. It said the proceeds of the placement would be used to defray the preliminary and issue expenses and the balance would be used to partly finance the acquisition of the SBP properties as set out in its prospectus. Pivotal has‚ since 2009‚ been an unlisted property investment and development company. The group has an office and retail property portfolio‚ divided into completed income-producing properties and developments (including the current developments and the future developments). Pivotal said its focus would be on creating sustainable value for its investors by achieving above-average growth in the capital value of its portfolio. The portfolio of income-producing properties is currently valued at approximately R7.8bn.
Author: SA Commercial Property
