Managing director Barry Stuhler said that in the existing economic environment, characterised as it is by low business confidence, the fund produced "very good results."
Capital said its industrial properties‚ which make up 74% of its gross lettable area‚ had performed well.
"Warehousing and distribution properties within the portfolio continue to perform well. Areas such as Linbro Park‚ Longmeadow and Raceway Industrial Park have experienced strong tenant demand. Interest in large A-grade warehouses remains firm‚ while demand for manufacturing space continues to decline in line with the downward trend in this sector in SA‚" Stuhler said.
Capital owns a portfolio of 262 industrial‚ office‚ and retail properties‚ with its main focus on industrial and office properties.
The office market has been under pressure‚ with most property groups reporting high vacancy rates in the sector.
Stuhler said Capital had changed its strategy last year as greater demand for properties had seen A-grade property prices increase rapidly.
"We decided to enter the development arena‚ as building costs were relatively low and would focus mainly on developing A-grade industrial properties‚" he said.
Capital said that with the exception of a few nodes including the Sandton central business district‚ the office market remains characterised by high vacancy rates with resultant pressure on rentals.
In order to ensure its office properties remained attractive to the letting market Capital said it had "expended considerable resources" on ensuring that the properties in its office portfolio were well maintained and refurbished.
Last year Capital bought Clairwood Racecouse for R430m and renamed Clairwood Logistics Park. It plans to develop 400‚000m² of warehousing at a cost of R2bn at the new park. The fund also agreed to buy an 80% undivided share in two prime office sites in the Sandton CBD.
"The growth in the South African economy has been revised down to 2.6%‚ which will negatively affect the property market‚" Capital said.
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