MD Roger Perkin said both properties were earnings-enhancing "in terms of their initial yield. "We see the office sector starting to show good opportunity in terms of rental growth and capital growth. With all the supply (of offices in Gauteng) being absorbed, we are going to see good rental growth in the office sector and believe there are good opportunities."

He said the industrial property bought had strong leases and low rentals. "We believe the contractual rentals in place are below market rentals and there will be upside when we renew the leases or sign new leases," said Perkin.

Martprop, which has a property portfolio worth R2,6bn, said the larger of the two acquisitions was an industrial property in Pretoria.

The 28,538m? property is occupied by Nampak Tissue and Biddulphs Removals & Storage SA on five-year leases extending to 2010 and 2011, respectively. Perkin said the Nampak premises covered 25,149m? of warehouse, factory and office space and was used for the manufacturing and distribution of tissues, hygiene and foil products, as well as baby nappies.

Biddulphs uses its portion of the premises for storage and distribution.

The total acquisition price for the property was R32,5m. The office property, acquired for R33m, is occupied by Absa Bank in Midrand and covers 3000m?.

Perkin said the industrial property acquisition would boost its exposure to industrial property in Gauteng. About 60% of Martprop's industrial portfolio is based in Durban and about 35% in Gauteng.