SA Corporate Real Estate Fund (SAC) said on Tuesday it had entered into agreements with Collins Property Group to acquire a portfolio of 52 properties in excess of one billion rand, potentially growing the market cap of the fund to over nine billion rand.

A due diligence investigation of the portfolio is under way, said Peter Sparks, executive director-designate of SA Corporate and managing director of SA Corporate's recent acquisition, SA Retail Properties Ltd.

"The predominantly industrial portfolio is nationally spread," he added.

"The acquisition is subject to completion of the due diligence investigation, and approvals by SA Corporate trustees, SA Corporate Fund Managers, and regulatory and statutory bodies. It is also subject to procurement of the necessary funding."

The rationale for the acquisition and valuation, financial and property portfolio information will be provided in a further announcement, said Sparks.

SA Corporate unit holders were advised to exercise caution when dealing until the further announcement has been made.