Property loan stock company Shops for Africa issued a trading update on Friday saying that a distribution of 16,87c for each linked unit was anticipated for the six months to October 31, compared with 15,19c for the same period last year.

Shops for Africa MD Anton Botha said a combination of factors had contributed to the positive turn of events, one being the lower interest costs on its debt and the improved performance of its property portfolio from a net income perspective.

The question on everyone's lips was how this would affect Shops for Africa's long-term plans. There was speculation that property loan stock heavyweight ApexHi Properties could be negotiating the acquisition of the entire property portfolio of Shops for Africa.

In its November overview of the listed property sector, listed asset management company Provest said both firms were trading under a cautionary, lending weight to speculation that a deal was on the table.

Provest speculated that such a deal was in line with ApexHi's strategy to continue increasing its asset base and to diversify risk.

Business Day