This brings 96,640m² of additional space into the industrial property fund. The acquisitions will be funded in cash and shares with 20% of the total purchase price being settled in new Metboard linked units at an issue price of R3.11 per linked unit on an ex-distribution basis.

The strategic decision makes sense on a number of different levels, explains Metboard fund manager Jeffrey Sher. It widens the fund’s geographic exposure, balances the lease expiry and tenant profiles – and at an attractive yield.

In line with ongoing strategy, it provides greater exposure to the industrial sectors in the Western Cape and Kwazulu-Natal. Although the bulk of the portfolio is in Gauteng, four of the buildings are located in Durban, and a further two in the Cape.

Plus, it enhances the lease expiry profile of the fund. Sher points out that 15 of the portfolio’s tenants are either national listed companies, or international companies. Critically, the various leases have expiry dates in 2010, 2011, 2012 and 2014.

The properties display a negligible vacancy level of 1,290m² or just 1,3% of the total floor-space. The vacant space is located in Spartan, a busy industrial node close to Johannesburg International Airport.

"There’ll be no problem letting it," states Sher, who adds that the average yield on the properties is 12.75%.

Cognisant of market trends, the portfolio is strongly light industrial in nature. Although three of the premises are heavy industrial factories, the remainder are motor showrooms, warehousing and services industrial. Sher reckons that the various types of space will rebalance the fund’s tenant profile.

For further information, please contact:

Metboard Properties Limited

Jeffrey Sher

Tel. 011 286 7000

Or

Marketing Concepts

Sandy Davey

Tel. 011 880 2213