The first steps towards listing the property fund have been taken, with JSE-listed Resilient Property Income Fund announcing that it would dispose of some properties to the fund, which it is setting up.

David Lewis, MD of Diversified Property Fund and executive director of Resilient, said yesterday that Resilient would sell R50m worth of its units in the property unit trust Capital Property Fund to Diversified Property Fund. He said Resilient would also sell its industrial properties to Diversified.

The Resilient transsaction, in terms of which Resilient will obtain an interest of more than 20% in the new fund, is worth about R360m.

Lewis said that there were a further “two legs” in obtaining the assets for listing.

Diversified would acquire a property portfolio from a company called Full Sail for R63m.

Various vendors, or sellers of property, would sell about R257m worth of properties to Diversified, which would be a rural retail fund with some exposure to industrial properties.

Lewis said that they were planning to initially consolidate the new fund after listing.

“We have interesting property opportunities in the pipeline in the rest of Africa as well,” Lewis said.