The company was reducing its reliance on office property, of which there was a substantial surplus in some areas. This formed part of a long-term strategy to create an improved portfolio by balancing office property and other properties.

Based the company's interim results for the six months to December last year, the financial effects of the disposal include a 23% rise to 49c in earnings a share, and a 2% rise in net asset value a share to 489c.

The improvement in earnings is based on the assumption that the disposal was effected in July last year.

IFour also issued a cautionary notice to shareholders yesterday, stating that the company had entered into negotiations which could affect its share price.

Speculation arose that iFour was in merger talks with property funds Bonatla and AProp after iFour issued a cautionary notice on the same day as these two companies in October last year. The initiative seemed to have faltered as iFour withdrew its cautionary notice recently.

However, company CEO Anthony Diepenbroek said at that stage that a clear realignment of the sector was under way and the company was taking steps to ensure it played a strategic role in such a move.