Lack of track record proved to be a serious shortcoming for Acucap's bid for the properties, despite the fact that its offer was better in value than those of competing bidders, insurance group Momentum and property loan stock company Hyprop.

Acucap offered R345m to be settled through a 50/50 split of cash and new Acucap linked units while Momentum offered R320m cash. Hyprop also offered R320m and was negotiating a flexible settlement that could be 100% cash, 100% units or a combination of cash and units.

Figures in the Acucap maiden results for the seven months ended September could be used to support or reject the group's offer by unit holders of Cenprop which own The Mall and JHI House. Some Cenprop unit holders have said they were waiting to see these maiden results to make their decision.

Acucap was only listed in March this year while Hyprop boasts a listing track record of more than 10 years. In its maiden interim period Acucap produced a distribution of 65c a linked unit from a revenue of R67,4m. The group said the results were in line with prelisting forecast.

It said the operating income from the properties in the Acucap portfolio exceeded expectations but a deteriorating interest rate environment diluted income gains through increased interest costs. The group said in order to minimise exposure to interest rate volatility, a further 21% of prime linked borrowings has been fixed, taking fixed interest borrowings to 91% of total borrowings. The weighted average length of fixing was 4,2 years, and the average fixed interest rate was 13,3%. The company's gearing stood just above the 50% level.

Vacancies amounted to 1,7% of the portfolio by gross rental income, and 1,6% by gross lettable area. The group maintained its cautionary notice relating to its bid to acquire The Mall and JHI House. It said announcements containing further details of the proposed acquisitions would be published in due course.

This was despite a statement issued by Hyprop last week saying that it has received an undertaking from 50% of Cenprop's unit holders to support its offer.