The three general issues, which were intended to raise capital for acquisitions, represented an increase of about 16% of the total number of units in issue at the time.

After a complaint laid by Hyprop Investments after the general issue in February — which said that prior Sycom unitholder approval should have been obtained — the JSE found Sycom to be in breach of certain listing requirements and publicly censured the fund on Tuesday. No penalties were imposed, and no further action was required from Sycom.

Sycom said material unitholders such as Acucap Properties and retail property fund Hyprop were nonpublic unitholders in terms of the listing requirements "and were therefore ineligible to subscribe for such units".

Sycom CEO Paul Theodosiou said on Tuesday it "accepts the outcome", adding that Sycom saw no value to shareholders in pursuing the matter further.

Sesfikile Capital fund manager Evan Jankelowitz said while Hyprop could try to take the matter further, it would probably not benefit unitholders in any way. He said there was no reason for a penalty to be paid and the "slap on the wrist" was a good end to the matter.

He said Hyprop should be satisfied it would not happen again, and commended the JSE "for not letting the situation get out of hand".

Sycom said on Tuesday it had undertaken to the JSE that in future it would follow the JSE’s interpretation of the listing requirements "and seek unitholder approval in advance of issues of units for cash".

However, Hyprop CEO Pieter Prinsloo said on Tuesday the JSE rules stipulated that before an issue of units for cash, the fund needed approval from all shareholders, including Hyprop.

As a fund, Sycom did not have annual general meetings where it could seek shareholder approval, although approval was a requirement, Mr Prinsloo said.

He declined to comment further, saying Hyprop would likely issue a statement in the near future.