Investec, Nedcor Investment Bank, Shoprite, Marriott and RMB Asset Management are its major shareholders.

Anton Botha, managing director of Catalyst Property Asset Managers, which manages the portfolio, says a new tranche of retail properties is being assembled to boost Shops for Africa's assets from the listing value of R320-million to approximately R650-million.

'The proposed acquisitions, as stated in a cautionary announcement, are at an advanced stage of negotiation. They are in line with the company's short to medium-term objective of increasing the size of the portfolio to R1-billion. 'The aim is to improve the liquidity and tradability of Shops for Africa linked units through a larger shareholder base,' Botha says.

'The acquisitions are substantial properties, with a high proportion of national retailers as tenants and an attractive lease expiry profile. These shopping centres will have the added effect of reducing the debt-funding ratio of the portfolio, bringing it closer to the desired optimum level of 45%.

'Recent company results, posted by the various tenants that anchor SFA shopping centres, have given us further reason to be confident that the portfolio will return the forward yield stated in the prospectus, namely 15.9%.'

Gil da Silva, head of research at the Catalyst Group, says Shops for Africa's asset allocation will take into account the relative size of each province as well as its growth prospects.

'The Shops for Africa portfolio will be constantly monitored and positioned to optimise performance as economic events unfold.

'Despite Aids and other challenges facing South Africa, economic growth over the next ten years is forecast to substantially exceed that experienced in the last two decades on average. We are accordingly projecting significant growth in retail sales, particularly in durables.

'All the provinces will benefit to a measure and we will therefore structure the SFA portfolio to optimise its share of projected growth to the benefit of tenants, investors and other stakeholders, including the local communities'.

Botha adds: 'It is also our intention to enhance Shops for Africa's exposure in other African countries by investing in successful shopping centres that have their leases denominated in US dollars'.