Premium Properties Limited has furthered its record of impressive growth with a total return to linked unitholders of 106,6% for the year ended 28 February 2006, based on the price as at 28 February 2005, comprising of capital growth of 93,5% and a 22% increased distribution of 61 cents per linked unit.

“The continuing strong trading conditions and the stable interest rates combined with strict expense control and management’s ongoing programme of redevelopment, all contributed to the increase in distributable earnings,” notes Jeffrey Wapnick executive director of Premium Properties Limited and MD of City Property which manages Premium.

Premium’s property portfolio increased in value by R290,3 million to R1,3 billion, representing an increase of 30,9%. The company’s net asset value (NAV) increased by 51,3% to 599 cents per linked unit. Rental income and net rental income increased by 12,7% and 17,3% respectively, compared with the previous financial year.

Premium’s gearing at the end of the financial year was at a conservative 31,6% as against 35,7% the previous year. Interest rates in respect of 50,5% of borrowings were fixed at an average weighted interest rate of 11,6% maturing at various dates ranging from March 2006 to August 2007.

“Premium has continued to focus on its strategic objective of acquiring and redeveloping properties in the Pretoria and Johannesburg CBD and surrounding areas,” explains Wapnick. The recent redevelopment and growth of both CBDs has enhanced Premium’s investments.

During the year Premium acquired a further four properties located in the Pretoria CBD for a total purchase price of R40,7 million. These properties are both yield enhancing and have the potential to be redeveloped further to boost value.

Two properties were acquired in the Johannesburg CBD for a total consideration of R9,0 million. Planning has commenced to convert these properties to residential accommodation.

Two further residential projects in the Pretoria CBD were completed by Premium during the period at a cost of R61 million with an expected initial yield of 12%.

Planning is currently at an advanced stage for the redevelopment of a portfolio of properties situated in Hatfield. This project will create 661 residential units as well as 4,000m² of retail space. The investment is expected to yield an initial return of approximately 10%.

“With a stable local economic outlook and continuing strong trading conditions Premium is optimistic that it will achieve further growth in distributions,” says Wapnick.

The distribution will be paid to Premium linked unitholders on Monday, 22 May 2006.

~ Ends ~

For further information, please contact:

Jeffrey Wapnick
Cell: 082 900 1172
Office:  012 319 8708

PA:  Gillian Crerar
Office:  012 319 8709

Or

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Sandy Davey
T. 011 783 0700
C. 083 453 6668