Property fund Vukile said Thursday that following a due diligence investigation, the number of properties it proposes to acquire from Sanlam Group has been reduced from 13 to nine, and the price has decreased from R775 million to R527 million.

The proposed acquisition, originally announced in October 2009, will see Vukile acquire a portfolio of properties from Sanlam Life Insurance.

The acquisition was subject to the fulfilment of a number of conditions precedent, one of which was the conclusion of a due diligence investigation in respect of the properties to the satisfaction of Vukile.

Vukile and Sanlam Life have now concluded an addendum to the agreements in order to give effect to the revised number of properties and revised purchase consideration.

Vukile will now acquire nine properties from Sanlam Life for R527 million, to be settled either in cash or partly in cash and partly by way of an allotment and issue to Sanlam of Vukile linked units.

The property acquisition is subject to fulfilment of the remaining, conditions precedent on or before 31 July 2010.

These include approval and consents by the Vukile unitholders, the obtaining of the funding for the purchase price, approval by the relevant competition authority, and any other regulatory approvals that may be required, including the approval of the JSE and the Securities Regulation Panel.

The properties are situated in KwaZulu-Natal, Northern Cape, Mpumalanga, Gauteng and Northwest.

As the Sanlam group currently holds more than 10% of Vukile's issued, capital, the acquisition is a related party transaction in terms of the JSE's Listings Requirements, which requires a circular to Vukile unitholders and their approval.

The property acquisition circular will be issued in due course, Vukile said.

Shareholders were advised to continue to exercise caution in their dealings.