Cape Town - Paramount Property Fund (Paraprop), a listed loan stock company, is engaged in negotiations on several property acquisitions and good growth in distributions to unit holders is expected next financial year, according to managing director Rodney Squire-Howe.

Commenting on the release of interim results yesterday, he said the negotiations were expected to be finalised in the near future and the new properties would start to significantly improve the company's financial structure over the next few months  
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The company declared a distribution of 12c a unit for the second quarter, bringing its distribution to 24c for the six months to April, lower than last year.

Squire-Howe said conditions in the property letting market remained tough. "Our income continues to be affected by lower market rentals and two significant vacancies. However, we should be through the worst by the end of this financial year," he added.

Paraprop was unchanged at R3.42 yesterday.