INVESTORS who put money in London-based property group Liberty International last year came out with a total return on investment of 10,6%, beating a number of comparable instruments and indices, including the FTSE 100 index, which fell 24,5%.

This performance was achieved in a period that saw increasing worries over the slowing of the UK economy.

Liberty's results for the year ended December showed net asset value growth a share of 4,2% to 862p, while the dividend was up 4,5% at 23,7p a share.

Revenue increased to £351,1m from £331m, producing a 4,5% improvement in earnings a share before exceptional items to 25,5p.

Chairman Donald Gordon said the performance showed the resilience of the assets in which the group chose to invest.

The resilience of prime regional shopping centres was clearly demonstrated by a valuation surplus of 5,2%, or £177m, last year, said Gordon.

He said it was important to note that this surplus came as equity markets performed poorly, sectors of the UK economy were struggling and the office-market segment in the property industry was under pressure.

The group benefited from the general strength of retail spending in the UK, where nonfood retail sales increased 4%, according to the country's office for national statistics.

Liberty's asset register ended last year with investment properties valued at about £4,5bn .

About 90% of these properties were retail properties and 82% were regional shopping centres.

The group has committed itself to development programmes to the tune of about £425m. These include a £275m shopping centre in Norwich. There was also the £85m extension of MetroCentre in Gateshead due for completion next year.

The group has committed to a multimillion-pound extension of its Scottish retail development, Braehead in Glasgow.

Held through wholly owned subsidiary Capital Shopping Centres, Braehead is to be transformed into a mixed-use development incorporating a 28000m² business park, a residential development and entertainment activities.

During the year under review Liberty increased its stake in Nottingham's Victoria Centre from 38% to 100% for £157m.

Liberty's US assets produced a 9,3% capital appreciation last year, mainly through a strong performance from the Serramonte Shopping Centre in Daly City, San Francisco.

Looking ahead, Gordon said that with a committed, low risk development programme of £425m the group was looking forward to continuing growth.

'We intend to build on the outstanding achievements of 2002, which must rank as one of the most active years in the company's history,' said Gordon.