Adding further new buildings to the 287 million rand portfolio of properties acquired from the Momentum group, Freestone boosted its total portfolio value to 1.26 billion rand from 734.3 million rand a year ago. 
 
The group's strengthened balance sheet saw Freestone drop gearing even further from 58% to 51%, bringing it in line with the industry norm.

Borrowings of 644.7 million rand represent 51% of the total portfolio value at year-end.
 
Executive director Michael Aitken says that Freestone is investigating a debt securitisation structure which if viable, would be in place by March next year.
 
The year's positive activity saw satisfied unitholders, who received a 52.1% return, approve a name change for the revitalised fund (formerly called Arnold Property Fund).
 
Aitken points out that the group has benefited from the strategic consolidation of every five linked units into one. "Renewed investor interest supported by the consolidation of units has seen Freestone's market capitalisation grow almost fourfold." Freestone units trading a year ago at only 3.80 rand, ended the year at 5.25 rand.
 
In addition to the major acquisition of retail, commercial and industrial properties from Momentum in November 2004, the group also bought two office parks and three office buildings for a total of 86.8 million rand and sold shopping centre Columbine Crossing for 11.6 million rand.

Of the 87 properties in Freestone's portfolio at year-end offices are the major focus occupying almost half of the portfolio's rentable space.
 
Aitken says that the group's turnaround has positioned Freestone to deliver further growth. "We anticipate around 9% growth in distributions for the 2006 financial year," he says.

Economic conditions including lower interest and inflation rates and increasing demand for commercial and industrial premises will contribute to the growth.