ApexHi said it was on track to meet its year-end target of 211c for each combined unit a marginal improvement on the distribution of 208c for the full year to June last year.

ApexHi's linked unit structure is different to other listed property companies in that they are divided into A- and B-units. Aunit holders are guaranteed a distribution of 102c for as long as it takes for total distribution to reach 227c. B-unit holders have a higher risk, but also higher returns in future, as all future growth in income until the 227c mark is reached goes to them.

Once the 227c mark is reached, 45% of distribution goes to A-unit holders and 55% to the B-unit holders.

ApexHi also said it would be acquiring properties worth R500m over the next

12 months as part of its strategy to grow its portfolio to minimise risk and maintain the high liquidity levels of its A- and B-units.

These acquisitions will increase ApexHi's portfolio to well over R3bn.

"We are a high-income fund. We are buying properties at a higher risk level.

Growing the portfolio spreads the risk and that's the risk management tool in managing the portfolio," said CE Gerald Leissner .

Leissner said they had always bought properties in secondary locations.

"We've concentrated more on quality of tenant than the location," he said.

Leissner said government was its biggest tenant in the Johannesburg CBD but this was not considered a primary location.