DIVERSIFIED Property Fund’s distributions rose 14,6% for the six months to December after a positive performance from its industrial and retail property portfolios.

The property loan stock company said that demand for space in its portfolio was strong.

About 43% of Diversified’s portfolio consists of industrial property with the balance consisting of retail properties.

MD David Lewis said that Diversified was also benefiting from its vacant industrial land.

The land is located in Isando Business Park and Spartan in Johannesburg.

The company planned to reap the rewards of off shore investments in the next six months.

The company invested R200m offshore at last year’s exchange rates.

Of this amount, Diversified invested R147m in New Europe Property Investments, a property fund listed on the London Stock Exchange’s AIM. This investment was expected to yield 7% in euros this financial year.

Diversified owns 50% of the management company of New Europe Property Investments.

Diversified also invested R50m in the Fortress Reit fund, which holds offshore investments.

The investment had been made because Diversified had anticipated the rand weakening this year.

“The bulk of the benefits will feed through to the portfolio in the second half of the year,” said Lewis.

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