Vukile Property Fund Limited expects to see only a slight improvement in its trading environment for the remainder of the 2010 year, despite signs of a recovery in the South African economy.

Vukile Property Fund has reported an 11.5% increase to R323.3m in net profit available for distribution for the year ended March 2010.

Vukile Property fund  has said the number of properties it proposes to acquire from Sanlam Group has been reduced from 13 to nine.

Vukile Property Fund was expecting a 'reasonable' increase in distributions for the year to March and that it could even be slightly higher than originally anticipated.

Vukile Property Fund has raised R250m through Vukile Investment Property Securitisation to reduce the cost of funding its commercial property investment.

Vukile Property Fund says its board has in-principle approved the decision to internalise its asset management services.

Since June 2008 listed property loan stock companies have staged a comeback, says Gerhard van Zyl, Chief Executive of Vukile Property Fund which is a member of the Property Loan Stock Association of South Africa

Property loan stock company Vukile should be able to report reasonable growth in distributions in the twelve months to March next year because property fundamentals should remain fairly strong in spite of adverse market conditions.

Unit holders can expect reasonable growth in distributions for the year to March despite adverse market conditions.

The board has approved an interim distribution of 40.25 cents per linked unit