In 2011, the group converted all of its properties from hotels to rental apartments as a result of the challenges facing the tourism sector and as it looked to benefit from opportunities in the broader property sector.

The group said on Friday it intended to use the proceeds from the disposals to substantially settle all liabilities.

If group failed to enter into an agreement relating to the acquisition of viable assets that satisfied the JSE’s listing conditions within six months of being a cash shell, its listing would be suspended.

"The board will determine the way forward for the group," it said.

The group reported that its headline loss per share had narrowed to 2.22c from 5.85c for the six months ended December, helped by an increase in rental revenue.

Rental revenue was R8.1m, compared with R2.8m in the prior comparable period.

"The marked increase in rental revenue is as a result of improved vacancy percentages as the conversion to rental leasing was completed in the 2012 year," the group said.

Expenses reduced "substantially" since the completion of conversions of hotels to rental apartments. But due to continuing cash flow challenges, the group was still burdened with legacy costs that stemmed from the hotel operations, the group said.

A loss of R1.8m reflected the growth in rental revenue and "marked decrease in operating expenses in line with the change from hotel operations to the rental operations".