Growing portfolio pays off for Capital

Posted On Monday, 08 August 2005 02:00 Published by
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The injection of a substantial property portfolio into listed property unit trust Capital Property Fund last year is paying off with the fund announcing an 11,6% increase in its distributions for the six months ended June.

Barry StuhlerThe fund acquired 65 properties for R760m in August last year.

"We are ecstatic about the results, and we are looking forward to 10% growth for the full year," said MD Barry Stuhler, attributing them to the bulking up of the portfolio last year from R400m to R1bn.

"Then, of course, we spent most of the time after bulking up getting expenses reduced and renewing leases," Stuhler said.

He said the fund sold off its underperforming properties, and that Capital was "still on the acquisition trail".

"Now that the new acquisitions have been bedded down and assimilated into the original Capital portfolio, we'll have more time for acquisitions," he said.

"We'll be looking for properties with good growth potential for the future. Our strategy is to have sustainable growth."

Capital, which has exposure to industrial, retail and office properties, is benefiting from improvements in these markets.

It said trading conditions at the retail centres in its portfolio remained positive, while its industrial space was fully let. The office market had been improving steadily, resulting in a significant decrease in the vacancies in the office portfolio.

The fund said that acquisitions during the six months under review included the Mutsindo Mall in Thohoyandou, which, it said, it has agreed to acquire for R46,25m payable in cash.

 

Last modified on Tuesday, 06 May 2014 15:06

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