Hyprop recorded an increase of 9,82% in returns to investors for July, and attributed this to a strong appetite for the company's linked units.

At the moment Hyprop is involved with conducting a well-supported rights issue.

In May, Hyprop said it would issue rights to raise extra capital of R251,3m.

T his would give unitholders the opportunity to acquire 19 Hyprop units for every 100 held at a discounted R13,50.

Catalyst MD and portfolio manager Andre Stadler said there was also demand for Hyprop because it had been a top performer based on growth in distributions to unitholders.

Hyprop had a good track record and unitholders expected this to continue, he said.

Hyprop owns an 80% interest in the Canal Walk Shopping Centre in Cape Town, and in Hyde Park, The Glen and Rosebank Mall in Johannesburg.

Meanwhile, the fortunes of property loan stock company Arnold Property Fund (A-Prop) continue to improve.

A-Prop which experienced a substantial loss in the value of its linked units since listing, as well as a decline in net asset value recorded an increase of 6,58% in returns to investors for July.

Stadler said this was due to unit price appreciation, expectations that AProp's property portfolio would increase, reduced debt and overall risk reduction . In July, A-Prop announced it had entered negotiations to acquire properties worth about R312m from Momentum Property Investments.

If successful, the proposed deal would boost AProp's property portfolio to more than R1bn and see Momentum taking new units in A-Prop in exchange for the properties.

The size of A-Prop's property portfolio would also be boosted to more than R1bn.