Capital Property Fund share price closed almost 1% higher at R10.42 on Wednesday after the fund reported growth in distributions for the six months ended June at the upper end of its initial forecast, and also revised its full-year guidance upwards.

Weighed down by pedestrian economic growth, the office market continues to be the laggard of South Africa’s commercial property market, while the industrial sector is "in equilibrium" and retail property continues to perform well.

JSE-listed Capital Property Fund foresaw an opportunity when it acquired Clairwood Racecourse to convert it into a warehousing and logistics park, according to Galetti Commercial and Industrial, the brokerage firm that negotiated the transaction.

Capital director Andrew Teixeira says ideally about R1,4bn of properties needs to be added to the portfolio every year to refresh the portfolio and improve the gearing ratio from the current 25% to 30%

Capital Property Fund has posted a solid set of results for the 6 months to June, plans to become a specialised commercial and industrial fund.

Strategy of investing in well-located industrial and commercial properties with strong tenant covenants has paid dividends.

Capital Property Fund, which is part of the Resilient Group stable of listed property funds, has announced that Barry Stuhler has resigned as MD of the listed property unit trust