Growthpoint Properties Limited today announced a distribution of 39,1 cents per linked unit for its six-month interim period ended 31 December 2005, representing a growth in distribution of 10,1% from the prior comparable period.

“This distribution growth is ahead of expectations and market conditions indicate that

Growthpoint can expect similar growth for the full year,” says Norbert Sasse, CEO,

Growthpoint Properties Limited, South Africa’s largest JSE-listed property holding and investment company.

The increase in the Growthpoint’s linked unit price from 906 cents at 30 June 2005 to 1,100 cents at 31 December 2005 together with the 39,1 cents per linked unit distribution, equates to an annualised return of 51,5%.   The linked unit price has since increased to over 1,300 cents taking Growthpoint’s market capitalisaton to over R9,0 billion.

The strong performance of Growthpoint’s linked unit price together with the additional 43 million linked units issued pursuant to the acquisition of 48 properties valued at

R1,08 billion acquired from Tresso Trading resulted in the company’s market captitalisation increasing to just below R8 billion at the end of December 2005. Growthpoint’s property assets grew to in excess of R10 billion during the period.

Growthpoint, after the close of its interim period, announced it has agreed to acquire a further portfolio of 24 properties from Tresso Trading for approximately R1,6 billion at a forward yield of 9%, which will increase its property assets to over R11,5 billion and its market capitalisation to over R10 billion, based on the current unit price.

Resulting from its robust performance, Growthpoint was included in the FTSE/JSE Africa Financial Top 15 Companies Index (FINI 15), effective from 13 February 2006.

Sasse explains that Growthpoint’s double digit distribution growth can be attributed to strong property performance, the reduction in the cost of the company’s borrowings through securitisation and reduced vacancies across the property portfolio.

During the period Growthpoint secured its position as the most highly traded listed property stock offering superior liquidity. R2,5 billion of Growthpoint linked units traded on the JSE Limited, representing an annualised 74,5% of linked units in issue.

Growthpoint successfully launched its uniquely structured R5 billion commercial mortgage backed securitisation (CMBS) programme in November 2005. The initial issue on the Bond Exchange of South Africa of 5-year floating-rate notes of R805 million was the largest commercial property securitisation issue placed in South Africa to date. The refinancing of the securitised portion of Growthpoint’s debt consequently reduced the funding rate by over 1,15% per annum.

At 31 December 2005 Growthpoint’s loan to value ratio amounted to 42,5% and 89% of interest bearing debt was fixed at a weighted average interest rate of 10,8% for an average period of 7,3 years.

“The growth in rental income experienced during this period was mainly due to the inclusion of the properties acquired from Tresso Trading which were incorporated into Growthpoint’s portfolio on 1 July 2005 and thus contributed to the rental income stream for the full period,” points out Sasse.

During the period Growthpoint grew its retail property portfolio, acquiring the fully-let 18,200m2 City Mall in Klerksdorp for R105 million at a forward yield of 10,35%. It also increased its holding in Alberton City shopping centre by 4,5% at a forward yield of 10,8% on the purchase price of R13,3 million, bringing its total holding in Alberton City to 35,7%. Growthpoint increased its investment in retail property by a further R10 million through the purchase of vacant land opposite Waterfall Mall in Rustenburg to be used for the development of a value centre.

In the office sector, Growthpoint acquired a 2,177m2 office block in Chislehurston, Sandton for R16,3 million at a forward yield of 11%. The development of a 2,800m2 office block in Central Park, Midrand, for Trans Africa Projects was completed during the period.

Unlocking value from its existing portfolio, Growthpoint’s 5,276m2 extension of Waterfall Mall was completed at a cost of R68 million, as was the R50 million, 7,303m2 extension to Walmer Park shopping centre in Port Elizabeth. The construction of additional parking at Kolonnade shopping centre in Pretoria, the extension of Beacon Bay shopping centre in East London and the upgrade for Woolworths in La Lucia Mall were all completed during the period.

During the period under review Growthpoint sold The Willows, a small retail centre in Pretoria for R13,2 million as well as the 20 Skeen Boulevard office block for R6 million. A capital gain of R1,4 million was realised on these sales.

The additional properties also contributed to property expenses, which increased as a percentage of revenue. Sasse explains that this was mainly due to an increase in expenses such as assessment rates and insurance that were recovered from tenants and the recoveries are included in the revenue.

Growthpoint’s properties continue to experience high occupancy levels with vacancies declining from 4,8% at 30 June 2005 to 4,2% at 31 December 2005. By sector these vacancies comprise 0,8% industrial, 2,3% retail, and 7,5% commercial. A number of properties sold had not been transferred by the end of the period and on transfer of these properties total vacancies will reduce to 3,7% and commercial vacancies to 6,1%.

In line with its decision to disinvest from listed property investment other than its strategic stake in Metboard Properties Limited the focused industrial fund, Growthpoint sold a major portion of its listed property investments before the period, thus resulting in a decline in investment income.

The distribution will be paid to Growthpoint linked unitholders on Monday, 20 March 2006.

~ Ends ~

Issued on behalf of:                              
Growthpoint Properties Limited
Norbert Sasse: CEO
Tel. 011 286 7306
Cell 083 632 1599

By:                                                      
Marketing Concepts
Sandy Davey / Bronwen Noble
Tel                   011 880 2213
Cell                  083 453 6668  (Sandy)
Cell                  082 855 4349 (Bronwen)