The group has been through a rough patch, which was reflected in flat earnings growth over the past three financial years. It is currently trading under a cautionary notice and is expected to use its property sale proceeds to beef up its financial position.

The group has no borrowings in its balance sheet which points to huge growth potential.

Martprop MD Roger Perkin said future prospects had improved dramatically, partly owing to steps taken in the past few months.

Its recent deals vary from property sales to acquisitions and signing of new lease agreements.

The group's vacancy rate has fallen from about 7% in July to 4%. Perkin said the decline in vacancies to some extent reflects improved conditions in the industrial sector.

Martprop's property portfolio has a 70% exposure to the industrial sector where rentals have come under pressure over the past few years.

Improved industrial prospects are mainly driven by a resuscitated export-bound manufacturing sector which in turn has benefited from the weakness of the rand.

Martprop has disposed of a portfolio of underperforming properties for R64,1m.

In the course of the year ended September, the group acquired six properties in KwaZulu-Natal for R63,2m at an average yield of 12,9%.

These transactions did not alter the group's sectorial spread and left it with a portfolio valued at about R1,1bn.

Perkin said the group's overexposure to the industrial sector was not by design but was inherited in historical development of the portfolio. He said the group intended addressing this portfolio balance.

The geographical spread of the portfolio reflects 58% exposure to KwaZulu-Natal, 35% Gauteng and 7% to Eastern Cape and Western Cape. Perkin said they were also working to shift this geographical balance.

He said the group was not about to engage on a blind buying spree but would maintain its strategy of acquiring high quality properties.

Unlike many listed property funds Martprop can afford to acquire quality, low-yielding properties because it has maintained a low yield of about 13% in its portfolio.

The group is aiming to attain market capitalisation of R2bn in the near future, Perkin said.

Martprop linked units gained 2c to close at 174c on Friday.