The group's financial results for the year ended September show that iProp's debt was reduced from R194m to R35,7m.

Properties valued at R246m were transferred from iProp to a newly formed entity, iFour, under the guise of unlocking value in iProp assets.

This meant that a significant portion of the deals' proceeds were used to settle debt related to a property portfolio which had already left iProp's books.

The transaction between iFour and iProp was settled through a combination of cash and the issuing of iFour units.

A portion of the units was cashed out to reduce the debt and another portion was distributed to shareholders using a ratio of 34 iFour linked units for every 100 iProp shares held, iProp's new MD, Petra Heydenrych said.

Another portion of payment, in the form of 6-million iFour units has been deferred until next year.

Heydenrych said the group would decide in due course what to do with th e deferred proceeds. She said the earnings for the results under review were not comparable because of a radical change in the group's asset register.

Headline earnings a share came in at 26c from 105c reported in the previous year.

Turnover came in at R67,9m from R67,3m, reflecting the fact that the sold portfolio was transferred eight months into iProp's financial year.

Looking to the future, Heydenrych said iProp was trading under a cautionary notice due to its decision to focus on its landdevelopment activities.

The group was sitting on more than 1000ha of land.

About 600ha of this land was undeveloped land while about 400ha was at different planning stages. Heydenrych said iProp was looking to use its land development expertise to source outside business. The group had in the past focused in the development of its own land.

Most of its land is mined land in the south of Johannesburg, which they rehabilitate.

Iprop's share price closed at 340c yesterday.