The firm is under threat from Hyprop Investments, which has made an offer to its unitholders to acquire all their units.

Hyprop says the majority of SA Retail unitholders are opposed to the Martprop and SA Retail deal.

Shortly before Hyprop unveiled its takeover bid at the end of last month, SA Retail Properties and Martprop, both managed by Marriott, announced a property deal that would see the two funds co-owning each other’s retail properties.

Some market analysts saw this transaction as a defensive move, because if a third party tried to strip the assets out of SA Retail, Martprop would have a pre-emptive right to those properties.

Hyprop wants the Securities Regulation Panel to issue a ruling that the SA Retail and Martprop transaction be voted on by SA Retail unitholders.

Hyprop says the transaction constitutes "frustrating action" in terms of the panel’s code on takeovers as SA Retail’s board had reason to believe a takeover bid might be imminent.

It also says that in terms of JSE Securities Exchange SA rules, the size of the transaction is large enough to require SA Retail directors to take it to its unitholders for approval.

SA Retail Properties’ Peter Sparks said on Friday that SA Retail had been "promoting" the benefits of the Martprop transaction to unitholders last week.

"This has been well received."

He said benefits of the Martprop and SA Retail transaction included portfolio risk diversification, as SA Retail’s portfolio would grow substantially.

SA Retail said on Friday it had "responded in detail to the JSE and Securities Regulation Panel, disputing Hyprop’s contentions".