The announcement by Capital Property Fund (CPF) is  compared to 14,01 cents for the same period in 2002. 

CPF expects earnings for the remainder of 2003 to be similar to those of the first six months.

Charles Ryan, fund manager of CPF, says that one property has been disposed of this year, with transfer of a further eight expected this year.

"This is in line with our stated strategy of disposing of older under-performing properties.

"Transfer of a number of these has been delayed due to the difficulty of obtaining rates clearance certificates from the municipal authorities.

Various options to grow the portfolio significantly are being considered."

Ryan adds that vacancies had declined from 14% a year ago to 10% as at the end of June this year.

The current vacancy includes 3 200sq m at Southway Mall as a result of the redevelopment in progress.

Upon completion of the project and the disposal of the eight properties, the vacancy level is likely to drop to 6%. 

The R14-million redevelopment of the mall is expected to be finished in mid-December this year.

The building is being split into two parts, a convenience section with an adjoining value shopping component.  Both sections will be refurbished to modern standards.

It is substantially pre-let with 76% of the space committed. Continued interest by a number of retailers should ensure it is fully let upon completion, Ryan predicts.

He says an investigation into the possibility of providing additional parking at

number 2 Long Street - an office block in Cape Town, acquired by the portfolio earlier this year - is well advanced.

Refurbishment of the entrance, all lobbies, toilets and lifts is also a possibility.