The company, which is trading under a cautionary notice, stated that the acquisition, coupled with negotiations taking place with another listed property company, would have a positive effect on earnings and might enhance the price of Fairvest's linked units.

Fairvest reported an increase in attributable earnings to linked unit holders to R12,9m from R446000 for the period 12 months ended September 30 last year.

The group expects that the acquisition of the property portfolio, together with the underlying strength of the remaining Fairvest Portfolio, will contribute to enhanced earnings during the forthcoming financial year.

A distribution of 2,9c for each linked unit has been declared. In spite of the unfavourable property market conditions, high interest rates and the late transfer of a substantial portion of the property portfolio on September 30, the group achieved headline earnings of 9,1c for each linked unit.

This represents a net income yield of 16,5% on the current market price.

At financial year-end, the property portfolio, including the Gorfil properties transferred at the end of the financial year, amounted to R307,72m.

The turnover for the period under review was R46,1m. The finance costs during the financial year were R18, 991m.

Subsequent to the financial year end, six properties totalling R77,98m were disposed of. The group stated that the transactions would on approval by shareholders result in a fee of R5,45m payable to Fairvest. In this event, the board would consider payment of a special distribution to linked unit holders equal to the above amount.