Distributable income of 32,5c a linked unit is 4 percent up on the distribution of 31,25c in the first six months of the previous year.

SA Retail acquired 50 percent undivided half shares in Sanlam Centre, Pinetown, and Musgrave Centre, Durban, for a total R286 million in the six- month period. These regional centres have a large component of national and major tenants, and are both fully let. The company will continue to accelerate diversification into regional centres and negotiations are advanced for investment in substantial retail centres that satisfy SA Retail 's investment criteria.

Redevelopment and refurbishment opportunities are being pursued at several centres in the portfolio. The first phase of the R48,9 million redevelopment of Tokai Centre in Cape Town was completed in September, and is fully let.

There is strong tenant interest in the remaining 3 000sqm in the second phase. Plans are advanced to enlarge Highland Mews in Johannesburg by

6 230sqm at a cost of R34 million. The project includes a new Edgars store of 3 190sqm and a spread of national tenants. Both centres are under joint ownership by SA Retail and Martprop. Planning is also well advanced for the refurbishment of East Rand Galleria in Boksburg.

Properties that no longer met the company's investment criteria were sold during the period for a total R68,4 million. They were The Circle, Somerset West, Rondebosch Shopping Centre, and Witbank Checkers and Witbank Centre.

SA Retail is also disposing of Florida Junction, Florida, Cambridge Downs, Fourways, and Kyalami Downs, Midrand. These sales will realise R102,5 million.