Collapse of yet another proposed multibillion rand merger in the R300bn listed property sector raises renewed questions on whether consolidation is necessarily in shareholders' best interests.

Redefine Properties' prolonged effort to take over Fountainhead Property Trust collapses after the company failed to win over enough shareholder support.

Fountainhead Property Trust has agreed to sell to Redefine Properties all of its assets, including the Fountainhead property portfolio, in exchange for 82 Redefine shares for every 100 Fountainhead units held.

Rebosis Property Fund is in 'no rush' to decide on a full takeover of the company after a three-way merger collapsed.

Fountainhead Property Trust, which is managed and 66% owned by Redefine Properties, this week released 27 of its relatively smaller properties to the market.

Proposed 3-way merger between Rebosis,Delta and Ascension will create the first sizable black-managed property portfolio to rank among the R280bn listed property sector's top 10 companies in terms of size.

Redefine Properties has delivered an 8% increase in its distribution per unit to 36.40c in the six months to February compared with the year-earlier period.

Fountainhead Property Trust today declared an interim distribution of 29 cents per unit for the six-month period to 28 February 2014, representing distribution growth of 11% from the first half last year.

Smaller property funds are finding it difficult to compete in making acquisitions because of the increased cost of funding, this makes them targets for takeover by larger rivals.

Fountainhead says that Aaron Suckerman has resigned as its financial director to pursue other interests within the property industry.