The deal will boost ApexHi’s property asset base to more than R5bn and make retail property the dominant sector in its portfolio.

Prima Property Trust said yesterday that its strategy had been to acquire small shopping centres, offices and industrial properties for capital values of less than R15m.

"As a result of the decline in interest rates and property yields, Prima has found it increasingly difficult to continue to implement this strategy and the growth prospects of Prima have become constrained," it said.

Wolf Cesman, a director of Prima Property Trust Managers, the management company of Prima Property Trust, said that although they had managed to grow Prima from a R100m fund to almost R1bn, it would be "very difficult to grow this fund".

Madison, Prima’s asset manager, owns a 76% interest in ApexHi’s management company.

Cesman is an executive director of Madison.

The retail component of ApexHi’s portfolio will now increase to 43% from 39%, and its office portfolio will shrink from 43% to 39%.

ApexHi said this was in line with its objective of increasing its retail weighting to benefit from the positive retail environment.