Revenue and net operating income for the 12 months to March 2003 both increased, by 28,5% and 18,8% respectively. Total debenture interest payable to linked unit holders rose by 18,6%.

Metboard Properties, managed by Investec Property Group, has cut vacancies within its portfolio by a net 29 000m² during the past year. An aggressive letting policy played a critical role in reducing portfolio vacancies, with new leases taking up some 99,953m2 during the year. A further 9,282m2 of vacant space was sold.

Metboard fund manager, Jeffrey Sher says, "Although we saw increased vacancies in the first six months of the year, we reduced these substantially in the latter half of the year through a concerted - and clearly successful – letting drive ."

The year has seen a high level of both acquisitive and disposal activity.

Eleven buildings with a total value of some R28.35 million were sold, either because they were vacant or because they were deemed to be non-core properties.

During the year, the fund also acquired 22 new properties, with a total value of more than R200 million. In addition to new buildings, the fund has spent R20 million on refurbishment projects during the past 12 months, specifically targeting older and vacant premises.

"Our goal is to upgrade these properties with a view to achieving higher rentals in the long term. It’s a part of our strategy and we’ll actively continue to do this," says Sher.

The Metboard Properties portfolio, at year-end, comprised 158 properties with a total GLA of almost 1,2 million square metres. While the bulk of the portfolio, or 61%, is located in Gauteng, there is some geographic diversification into the Western Cape, Kwazulu-Natal and other areas. Major international and national tenants occupy 61% of the portfolio’s GLA, constituting secure covenancies and income streams.

One of the key strengths of the fund it that it is well-diversified within the industrial market, rendering it less vulnerable to volatility. Sher explains that the portfolio’s properties house activities ranging from warehousing, to exports and third-party distribution. As a result, says Sher, the fund is not overly exposed to fluctuations in the rand, or shifting industrial production levels.

Says Sher, "Industrial rental levels are holding, and the first signs of rental growth are beginning to emerge. We believe that we’ll see moderate growth into 2004. A cut in interest rates should positively impact on letting activity and further reduce our vacancy levels."

Ends

For further information, please contact:

Metboard Properties Limited

Jeffrey Sher, Fund Manager

Tel. 011 286 7675

Cell 082 881 3147

Or

Marketing Concepts

Sandy Davey

Tel. 011 880 2213

Cell 083 453 6668