The reduction of vacancies may also reflect a rejuvenation in the industrial property sector.

Metboard sold two industrial properties for an undisclosed amount and let a further 67000m² from its portfolio, cutting its vacancies from 9,2% in June last year to about 5%.

The properties that were sold were an industrial property in Germiston on the East Rand and a factory in Langlaagte, south of Johannesburg.

Metboard fund manager Jeff Sher says: "In the past nine months the group has been ... actively managing the letting process and selling properties that were not revenue- producing for the fund."

The group sold seven properties during the 2002-03 financial year and signed lease deals worth R30m, representing 36590m² of industrial space, in the three months to October last year.