15 November 2005

Metboard Properties Limited, South Africa’s largest industrial property company listed on the JSE Limited with industrial property assets of R1,9 billion, today announced an increased distribution per linked unit for the six months ended 30 September 2005 of 19.80 cents per linked unit.

This represents a 7% increase from the distribution declared for the corresponding six-month period in 2004 and a substantial upswing in performance for a fund which posted a 3% and 2,6% growth in total distributions for the years ended March 2005 and 2004 respectively.

The recent strengthening of the Metboard’s performance and growth flowed from the renegotiation of the company’s debt facilities, the attentive enhancing of its property portfolio, and aggressive leasing and tenant retention under the resolute asset management of Investec Property Group and executive directors Estienne de Klerk and Tyrone Govender.

“Subject to market conditions remaining stable, Metboard’s distributions for the period ending

31 March 2006 will show similar growth as a result of the fund’s prudent acquisitions, reduction in vacancies across the portfolio, normal sustainable rental escalations and interest savings from the strategic restructuring in fixed loans,” explained de Klerk

Metboard’s total distributable earnings increased by 16,4% to R55.4 million for the interim period ended 30 September 2005 from the R47.6 million reported for the prior interim period. Total debenture interest payable to linked unitholders increased by 17%.

The company’s market capitalisaton surpassed the R1,4 billion mark at the close of the interim period whilst its net asset value increased by 19,7% to 371 cents per linked unit.  The stated NAV was negatively affected by the accounting statements for leases IAS 17 and financial instruments IAS 39.

Revenue and net operating income, before accounting for the straight-line lease adjustment, increased by 16,2% and 24%, respectively, over the comparative period. This was achieved from Metboard’s portfolio of 164 prime industrial properties located across South Africa and valued at R1,9 billion with a gross lettable area of 1,417,475m2 including warehouses, industrial parks and mini-units, light industrial, manufacturing and retail/motor warehouses.

“Metboard’s improved interim results have been achieved while retaining conservative gearing levels with borrowings representing 39.3% of the value of the property portfolio,” stated de Klerk.

At 30 September 2005 Metboard’s total borrowings, including the mark to market value of the fixed interest rates, amounted to R741.9 million.  Interest rates in respect of 87% of borrowings have been fixed for periods ranging from one to seven years. The weighted average cost of the fund’s finance amounted to 11.4%.

Metboard’s positive performance reflected in the active trade of its linked units on the JSE, achieving a record high in the period of 464 cents on 7 September 2005 which subsequently improved to 520 cents per linked unit on 25 October 2005, nearing the exdistribution date.

A total of 62.5 million Metboard linked units traded during the period, equating to 22.3% of those in issue with the closing price of 450 cents per linked unit, as traded on the JSE on 30 September 2005, reflecting an increase of 18.1% compared to the closing price of 3.81c on 31 March 2005. Metboard linked units achieved a return of 50.3% for the 12-month period ended 30 September 2005.

Trading in Metboard’s linked units has resulted in its major linked unit holders being Marriott Asset Management Group (20.28%), Growthpoint Properties Limited (11,99%), Old Mutual Asset Management (8,61%), Investec Listed Property Investments (5,27%) and Investec Bank Limited (4,99%).

In enhancing Metboard’s property portfolio the fund disposed of 14 properties for R54.0 million, and acquired a further two properties at a cost of R23.3 million during the period. The refining of Metboard’s portfolio of properties is ongoing and pursuant to the interim period the company took transfer of 3 properties at a cost of R35.8 million and disposed of a property for R4.8 million.

Within the Metboard portfolio vacancies reduced from 35,304m2 to 29,455m2 at 30 September 2005, equating to a mere 2.1% of gross lettable area and has since decreased even further to 1,5%.

Management’s stated objective was to renew at least 85% of all expiring leases, and in line with that 87.7% of the expiring leases were renewed during the period,” Govender said. Furthermore the weighted average increase in rental on these renewals was 16,2% on prior rental levels.

“This bodes well for the fund as it reflects that market conditions are more positive within a macro-economy with sound fundamentals and therefore the fund is well positioned to deliver growth,” said Govender.

The interim distribution of 19.80 cents per linked unit for the period 1 April 2005 to 30 September 2005 will be paid to Metboard linked unitholders on Monday 12 December.

~ Ends ~

For further information, please contact:

Metboard Properties Limited

Estienne de Klerk

Tel. 011 286 7642

Cell 082 553 0873

Or

Metboard Properties Limited

Tyrone Govender

Tel. 011 286 7814

Cell 082 804 2349

or

Marketing Concepts

Sandy Davey

Tel. 011 880 2213

Cell 083 453 6668