The proposals will internalise the management of the company in a manner that would better align the interests of management with those of investors‚ the property fund said in a statement.

"The board believes that Capital is now at a stage where it is preferable to internalise its asset-management function. The internal management model is considered consistent with investor preferences and best practice globally regarding management and governance for the sector‚" it said.

In terms of the proposals‚ Capital unitholders will become direct shareholders in New Capital‚ which will be separately listed on JSE on June 30.