The group forked out R27,6m to acquire the entire share capital of companies representing the portfolio together with their liabilities. The portfolio was acquired from K-H Properties, which had kept it in five share-block companies.

A-Prop said in a statement the acquisition was in line with its long term objective of assembling a property portfolio with sufficient critical mass to ensure the diversification of risk and the spread of fixed costs over a wider base.

'Whilst the acquisition will not have a material impact on the earnings and net asset value of A-Prop, it will nevertheless have a positive impact on the quality of A-Prop's portfolio and in the reduction of gearing,' the group said.

It said that the properties acquired are income producing properties, which are substantially let and comprise a mixture of office and retail properties.

The purchase consideration is to be settled through the issue of about 11,5million of A-Prop's linked units at an issue price of 180c a linked unit on the effective date, December 1.

A further 3,8-million A-Prop linked units would be issued at 180c a linked unit 13 months after the effective date.

The A-Prop linked unit price gained 1,1% or 2c to close at 172c on the JSE Securities Exchange SA yesterday. The linked units continue to trade under a cautionary notice. A-Prop's name was mentioned in a speculated merger between three listed property companies.