Property Reporter

STANLIB'S specialist property asset management unit reported yesterday that its return since its inception in September last year exceeded 35% 13,5% in income return and the rest in capital appreciation.

Standard Bank Property Income Fund manager Mariette Warner said the fund's success was due it coming to the market at the right time.

"Property is cyclical. When interest rates fall, prices rise. When we started 12 months ago it was perfect timing because the listed property sector started turning strongly positive at the beginning of October 2002," said Warner.

Over the year to October 24 the fund was the third-strongest property fund, after the Marriott Property Income Fund and the Marriott Property Equity Fund. In the six months to October 24, the fund was second to Oasis Property Equity Fund. For the three months to October 24 the fund took the top position. It has a market value of R440m.

"Looking ahead a yield, net of costs, of about 11,4% is anticipated. Further interest rate cuts and distribution growth by the underlying property shares invested in bode well for some further capital appreciation," Stanlib said.