Bonatla Properties parent Bonatla Property Holdings (BNT) said cash flow was the main rationale for the sale‚ as the board thought keeping the companies would incur unnecessary holding costs and capital expenses.

The sales took effect on June 1 2013.

The purchase price for Milestone Place will be a maximum amount of R9m and for Property 259 Properties a maximum of R14m.

Shareholders were advised to continue to exercise caution in dealing in their shares until details of the pro forma financial effects of the disposals are released.