Pangbourne had negotiated better rental agreements in its property portfolio because demand for commercial space was increasing.

The company reported that its total distribution to unitholders for the year was 91,5c a unit, which was up 2,5c from last year.

Pangbourne CEO Athol Campbell said yesterday occupancy levels in the company's portfolio had increased from 90,7% in June last year to 93,8% this June.

That was primarily the result of the buoyant property market as well as greater demand for space on the East Rand.

Campbell said he expected the addition of the Strupot property portfolio to marginally reduce occupancy levels. Pangbourne has acquired a R439m property portfolio from Strupot Property Investments.

Last week it said the acquisition would increase its distributable earnings to unitholders by about R7m for the period from October to next June.

Campbell said the acquisition was an opportunity to obtain full value from the purchase and then increase occupancies again.

He said the total value of the Pangbourne's property portfolio was R1,1bn, but this would increase to R1,5bn with the acquisition.