UK property fund CIREF, which has a substantial South African shareholding and is listed on London's Alternative Investment Market (AIM), said this week its net profit rose 17,4% to R33,4m, compared with the unlisted predecessor fund's pro forma results for last year.

Corovest International, the British property arm of SA-based Coronation Investments & Trading, listed CIREF in May.

Corovest International CEO Mike Watters said the results were attributable to "the strong property markets in all the geographical regions in which we operate".

The fund's earnings a share rose 41,1% to R2,29 and management said it was on track to meet its target dividend of 31c a share.

The fund has exposure to retail, office and residential property and has 16 fixed property and listed property assets in the UK, Europe, the Channel Islands and the British Virgin Islands.

Although some UK retail property commentators have raised concern that the retail segment could be hit by a fall in consumer demand on possible higher interest rates, chairman Gavin Tipper said CIREF was protected as it tended to enter into long leases of 10 to 15 years.

Tipper said CIREF opted for "better quality tenants" and that its retail centres were holding their value.

Property loan stock company Redefine Income Fund is one of CIREF's largest investors, with an 18% stake.

Redefine CEO Brian Azizollahoff said that "these were very good results, on par with expectations".

Azizollahoff said Redefine wanted to keep its stake in CIREF at 18%.

Business Day