Cape Town - Listed property group Paramount issued a cautionary notice on Wednesday afternoon, confirming speculation earlier this week by Fin24 that something was afoot at the company.

Paramount warned its linked unitholders that the board was "aware of discussions that are currently taking place, which, if successfully concluded, may have a material effect on the price of the company's securities."

Fin24 reported on Monday that rumours circulating around the Cape Town property sector suggested that Friday's AGM for listed Paramount Property Fund could see influential shareholders blocking a proposal to introduce a Mvelaphanda-led consortium as an empowerment shareholder.

The Mvela deal will purportedly be opposed on the basis that the proposed empowerment deal does not add value to Paramount and dilutes the interests of existing shareholders.

It seems 22% shareholder Redefine Income Fund, a major force in the property sector, could spearhead shareholder resistance to the empowerment transaction.

Fin24 also speculated that Redefine may be eyeing Paramount as a possible takeover target. Redefine holds significant stakes in major listed property groups like Apex-Hi and Hyprop.

It is understood that Redefine has recently acquired a parcel of additional Paramount shares from another institutional shareholder.

Currently Absa is the largest single shareholder in Paramount, holding some 28% of the linked units.

Interestingly Ambit Properties - in which Absa also holds a major stake - also issued a cautionary notice on Wednesday.

Ambit warned its linked unit holders that "that the company is aware of discussions with regard to a potential change in the composition of its unitholders, which could have a material effect on the unit price."

Are the Ambit and Paramount cautionary notices more than a coincidence, or merely the result of a fast consolidating Real Estate sector on the JSE?