VKN - Vukile Property Fund Limited - Vukile grows interim distribution by 7.5%

VKN - Vukile Property Fund Limited - Vukile grows interim distribution by 7.5%  
and plans to grow fund more aggressively                                        
Vukile Property Fund Limited                                                    
(Incorporated in the Republic of South Africa)                                  
Registration number 2002/027194/06                                              
JSE Share code: VKE    ISIN: ZAE000056370 NSX Share code: VKN                   
("Vukile" or "the company")                                                     
VUKILE GROWS INTERIM DISTRIBUTION BY 7.5% AND PLANS TO GROW FUND MORE           
AGGRESSIVELY                                                                    
Johannesburg, 21 November - Property loan stock company Vukile today reported a 
7.5% increase in its interim distribution to 54.31 cents per linked unit and    
said it plans to grow the fund more aggressively.                               
Net rental income, excluding straight-line rental accruals, increased by 8% over
the comparable period while net profit, before debenture interest, increased by 
25% from R209 million to R260.9 million.  In addition, the overall cost of      
funding for the company was reduced from 9.77% at 31 March 2011 to 9.38%,       
following a refinancing of an expiring debt facility of R450 million.           
Vukile`s retail component performed well during the review period with strong   
demand from expanding retailers.  Interest for space in the industrial market,  
particularly for small to medium sized units is increasing but demand for larger
units remains subdued.  The vacancy profile (% of gross rentals) increased from 
5.1% at 31 March 2011 to 6.9% at 30 September but this was largely due to a     
major upgrade taking place at Randburg Square.  Excluding the impact of this    
renovation, the vacancy profile increased to 5.9%.                              
Chief executive Laurence Rapp said trading conditions are expected to remain    
soft in the office and industrial sectors, but given a stable retail            
environment, he was positive about Vukile`s prospects and expected further      
growth in the full year distributions.                                          
He said Vukile`s strong performance, sustained over the seven years since its   
listing, had laid the foundation for Vukile`s next growth phase, which is to    
expand the portfolio significantly.  "Having reviewed our longer-term strategy, 
we intend to grow the fund more aggressively than has previously been the case. 
We remain committed to being a diversified fund but with a stronger emphasis on 
the retail sector."                                                             
"To this end, we are exploring acquisitions of retail centres as well as joint  
venture development opportunities in the retail environment that would          
complement our existing portfolio make-up.  We also continue to believe in the  
strength and growth of retail in the emerging market and, based on the          
performance of our current retail assets, we will focus our expansion on this   
market segment.  This, however, won`t preclude us from acquiring assets serving 
higher income groups should the right opportunities present themselves."        
He said the acquisition of a portfolio of 20 properties from Sanlam, which was  
announced last week, was the first step in Vukile`s growth strategy and would   
add some R1.5 billion, or 25%, to the value of its portfolio.  "We will acquire 
some retail assets in the portfolio, notably Durban Workshop, but the office    
assets being acquired will enhance the overall quality of our office portfolio  
as well."  Vukile has been managing this portfolio on behalf of Sanlam for some 
time and, therefore, has an in-depth understanding of the properties being      
acquired, making this a low risk and seamless acquisition.                      
For further information contact Laurence Rapp, CEO Vukile Property Fund Limited,
on 083 266 3011                                                                 
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.      
dPA contact Helen McKane Tel : +27 11 728 4701,Fax: +27 11 728 2547, Mobile: 082
330 2034 or  e-mail: vukile@dpapr.com                                           
website: www.vukileprops.co.za                                                  
Sponsor:                                                                        
One Capital                                                                     
Date: 21/11/2011 08:35:00 Supplied by www.sharenet.co.za                     
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