Martprop, soon to be renamed SA Corporate Real Estate Fund, concluded leases to a value of R404 million and recorded retention of 83% of all leases that expired in the year to July 31, 2006. Perkin said the fund would be negotiating leases or renewals on more than 20% of the portfolio in 2007 and was well positioned for rental growth in the current climate. It was confident that unitholders can anticipate distributions to grow in line with sector expectations in the years ahead.

“Significant new lettings and renewals have been struck at market-related rentals, but these are much improved on previous rentals and are mainly on five- and 10-year terms. Given the present strong demand and limited supply, tenants are making increasing use of consultants to secure properties on best possible terms over longer periods than was the norm.” Perkin said that, with the completion of an 18 000m² development in Tygerberg Business Park, at Parow, Cape Town, the fund’s top 10 tenants now accounted for more than 38% of the lettable space in the portfolio.

The top 10 which occupy mainly modern industrial properties are The Fuel Logistics Group, the Grindrod transport and logistics group, Mr Price, Autoparts Distributors, Bell Equipment, Universal Print Group, Babcock Africa, TFD Network, ABB Industry and Sandown Motor Holdings. Following the completion of recent developments and purchases worth more than R350 million, industrial properties now make up 64% of the total portfolio, retail accounts for 26% and offices for 10%. Perkin said the pending change in name to SA Corporate Real Estate Fund (new logo shown here) identified with its new direction as it pursued active expansion and positioned itself to attract significant domestic and foreign equity investment. The change follows the acquisition of the fund’s management company by Old Mutual Property Group.