Changes in the offing include a name change from Fairvest to Reit Property Holdings, and the group's asset management role will be taken over by Sanlam Property Asset Management.

The conclusion of the acquisition, announced yesterday, has also delivered improved critical mass which is a strategic goal at which every listed property fund aims.

It has delivered a strategic partner, Sanlam, which contributes properties worth about R150m for an interest in Fairvest.

Daisy Street is an unlisted property fund.

The acquisition means Fairvest's property portfolio has been boosted to nearly R750m. Fairvest also announced the sale of properties worth R77m, which CEO Nicky Vontas describes as nonstrategic properties.

The Daisy Street portfolio is made up of a mix of retail, industrial and office properties located across the country.

The value of the Fairvest portfolio was quoted at R334m when the group reported its maiden interim results for the six months ended March.

Net asset value a linked unit was quoted at 112,9c.

The linked unit price of Fairvest gained 5c or 9% to close at 60c on the JSE Securities Exchange SA, which reflects a huge discount to the current net asset value a share.

Vontas says settlement of the Daisy Street portfolio acquisition has been structured to defer payment in order to avoid heavy dilution.

The Daisy Street portfolio has been gathered over time from different vendors, one of which is Rentsure Holdings.

In a strategic move to reduce its property exposure Rentsure sold a portfolio worth R91m to Daisy Street.

The Rentsure sale was linked to the pending deal between Daisy Street and Fairvest. As a result Rentsure is to be paid through R30,3m cash plus two tranches of Fairvest paper.

Rentsure will receive about 21,5-million convertible Fairvest debentures issued at 150c a debenture and adding to a total of R32,3m.

A further 18,9-million compulsory convertible debentures will be issued at 150c a debenture and adding to a totalling of R28,3m.

The Rentsure portfolio comes with a leaseback arrangement whereby Rentsure has signed up to occupy a large portions of the properties it sold to Daisy Street.

The leaseback arrangement covers certain portions of a property called Rentmeester for which Rentsure has signed a 10 year lease, with a rental escalation rate of 9% a year.

Other portions of the portfolio will be leased to Rentsure for three years with a rental escalation rate of 9% to10% a year.

Fairvest was reverse listed into a cash shell called Glocash Investments in December last year.