British-based property group Liberty International, which has a substantial South African shareholding, has on Thursday reported an increase in its dividends for the year to December of 6% on the previous year.

The group's earnings a share rose 5,7%. Speaking from London on Thursday CE David Fischel said that Liberty International's rental income growth for the year increased 2,9% on a like-for-like basis.

The market value of Liberty International's investment properties, including its share of joint ventures, increased 12% to £5,3-billion from £4,7-billion in the year under review.

One major development shareholders will look forward to is the opening of the company's Chapelfield shopping centre in Norwich later this year.

The project cost, excluding its residential element, was £260-million. This project forms part of Liberty International's development programme of £1,3-billion.

The programme includes major new regional shopping-centre developments in Cardiff and Oxford, as well as its Braehead centre in Scotland.

Included in this programme are substantial extensions and additional investments to its shopping centres Eldon Square in Newcastle and the Harlequin in Watford.

"The point we've made to the market place is that in almost every case we are extending existing prime locations. Extending existing locations is a much lower risk than pioneering new ones," said Fischel.

Liberty International's directors proposed a final ordinary dividend a share of 14,1p, bringing the total ordinary dividend a share for the year to 26,5p. The total for the previous year was 25p.

Chairman Donald Gordon said last year ranked as one of Liberty International's "most active and successful years" since its incorporation 25 years ago.

Gordon, who is retiring later this year, said the company recorded strong financial results and completed a "record number" of projects and transactions.

He said these had "considerably enhanced the positive momentum of the business".

Liberty International will make an announcement about Gordon's successor in the second quarter of this year. Market expectations are that the successor may come from the existing board.

The company has invited Gordon to stay on as president for life.

Colin Young, fund manager of Old Mutual's SA-listed property funds, said Liberty International had reported an "excellent set of results. I am pleased they have sold the Great Portland portfolio because now they can be classified as a focused retail fund."

Liberty International announced in October last year that it had agreed to sell its 25,5% interest in the London Stock Exchange-listed Great Portland Estates.

Young said the company's development pipeline was "exciting".

Liberty International will be conducting important rent negotiations in the second half of the year, and Young said this would enhance its income.

Young welcomed the news that Gordon would be Liberty International's president for life.

Business Day