Balwin cans ‘risky’ development
Balwin Properties, SA’s largest sectional title developer, has cancelled its first apartment development in Gauteng’s richest square mile, Sandton, saying it was too risky.
Balwin Properties, SA’s largest sectional title developer, has cancelled its first apartment development in Gauteng’s richest square mile, Sandton.
The group announced in November that it would develop a new apartment option, the first of its lifestyle brand, with units priced at less than R1m, called Wedgewood Sandton. These one- and two-bedroom apartments would be priced from R799,000.
However, the company said on Wednesday it would no longer proceed with the project, saying it was too risky.
“The main risk is this was going to be a huge, 1,290, singlephase development. We normally build in phases. We like to monitor the rate of sales and construction. It was just too risky,” said financial director Jonathan Weltman.
Balwin will continue to develop properties under its Green, Classic and Signature brands. “The company has 18 developments across SA right now with 62,000 units in our pipeline,” Weltman said. Those people who have applied for a unit at Wedgewood are welcome to a full refund with interest or to buy another Balwin property at a discounted price.
A number of developers have recognised that Sandton is an area that can house professional millennials and shift from being an office node to a live, work and play node. Examples of developers bringing high-end stock onto the market there include BlackBrick and Abland.
BlackBrick opened BlackBrick Sandton One, on Fredman Drive, in November 2020. The development, which was converted from SAB-AB InBev’s former head office, has 208 apart-hotels and attracted about R300m in sales. Apart-hotels are apartments containing a few rooms, such as a bedroom, a bathroom and lounge area, within apartment buildings with communal rooms and hotel services. The apartments offer attached hotel and club facilities.
BlackBrick Sandton Two, with 275 apartments, is scheduled to open in 2022. In the next few weeks, Blackbrick Cape Town is set to open on the Foreshore.
The club offering means apart-hotel owners can access a network of rewards, such as a Sandton apart-hotel owner being able to rent space in a Cape Town apart-hotel at a 15% discount.
Meanwhile, Abland has developed Sandton Gate, on Minerva Avenue, in Glenadrienne. This multi-use development on the edge of Sandton is designed to attract people who work in the area but who do not want to live in its busy commercial centre. Prices range from R1.799m to R6.95m.