"We are pleased to report that the fund has continued to produce sustained growth in earnings to its linked unit holders," said Jeffrey Wapnick, Managing Director of Octodec.

"We expect that the distributable income for the second-half of this financial year, ending 31 August 2004, will be no less than the current distribution of 31 cents per linked unit subject to prevailing marketing conditions and the interest rate environment remaining constant, with the total distribution amounting to at least 60 cents per linked unit," said Wapnick.

Headline earnings per linked unit for the six-month period ended 29 February 2004 amounted to 29,6 cents as compared to 23,2 cents during the corresponding period in 2003, representing a 27,6% increase.

Turnover increased by 7.3% and net rental income increased by 7.7%, compared with the previous six-month period ended 28 February 2003.

Octodec’s proactive leasing approach during the period resulted in a substantially improved tenant mix for its shopping centres and a steady improvement in the letting of office space.

The upgrading of properties within its approximately R666 million prime Gauteng-based portfolio has been a focus for Octodec, with the improvement of retail centres Killarney Mall Shopping Centre and Elardus Park Shopping Centre during the previous financial year contributing to the increase in rental income.

Octodec is further considering a number of major refurbishments and extensions, including Killarney Mall Shopping Centre which will include the construction of approximately 5,500m2 of additional retail space and 430 new parking bays, at an approximate cost of R77 million. This refurbishment is expected to yield an initial 11% return.

Killarney Mall is showing a significant increase in foot traffic and we have been successful in attracting a number of new, more modern tenants to the mall, in accordance with consumer demand. In addition, Woodmead Value Mart is trading successfully with and strong increase trade, proving to be a growth asset.

At 29 February 2004 Octodec's borrowings amounted to R346,4 million, equating to a 52% debt to property value ratio. Of net borrowings 67% have been fixed for various periods ranging from October 2004 to November 2006 at a current weighted average cost of funding of 11.4%

The current vacancy level has decreased with 93% of the Octodec Portfolio let.

In addition the improved performance from an associate company, IPS Investments (Pty) Ltd, in which Octodec owns a 40% stake, also contributed to Octodec's positive results.

Octodec investors can enjoy the profits of the hugely successful residential sectional-title development, Riverplace in Centurion, with which IPS is currently involved, in the next six-months of the financial year. The development was completed and fully sold as at 29 February 2004.

Issued on behalf of Octodec Investments

By Marketing Concepts

Sandy Davey

Tel: 011 880 2213

Octodec Investments

Jeffrey Wapnick

Tel: 012 326 8811

Cell: 082 900 1172