Pangbourne has shown a double-digit growth in distributions of 10.7%. This sustainable distribution growth has been driven by the favourable market conditions and the growth in the unique octopus strategy. The year's distribution of 114c is made up of income from the directly held portfolio, distributions from the specialised associates, sale of properties and investments held for trade and transactional fee income. Eight properties totalling R440 million were acquired during the year and developments and improvements to the value of R995 million are currently in progress on these properties. A further 6 properties were acquired at a cost of R192 million. A total of 9 properties with a value of R947 million are in the process of being transferred and agreements to the value of R1 109 million have been concluded to develop these and additional properties.
The occupancy level of Pangbourne's directly held portfolio was at 98.4% at 30 June 2007 and reflects the buoyant property market. With current rentals still not supporting adequate returns on new property investments, market conditions are expected to remain favourable for growth.
Prospects
Pangbourne is celebrating its 20th year as a JSE-listed company. The group has not only survived the traumatic 90s but have emerged as one of the major list property loan stocks. Commercial property is in an upward cycle and Pangbourne is well placed to capitalise on the opportunities that are being presented by the overall growth in the economy. Pangbourne expects to continue its growth in distributions to unitholders for the foreseeable future.
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