The negotiations are in line with its stated intention to transform itself into a niche property fund.

However, Steven Jersky, the chief executive, stressed last week the trust did not want to raise expectations and was not in any great hurry to conclude any of the negotiations.

"If we conclude agreements over a lesser amount than that under negotiation, we will not be too concerned. Our intention is to purchase properties that fit within our investment criteria and [not to buy] for the sake of buying," he said.

The properties would be purchased with a mixture of 30 percent cash and 70 percent Prima units. Jersky said it was anticipated that a billion-rand-plus portfolio would be assembled.