Balwin Properties expands to KZN market
LISTED sectional title homebuilder Balwin Properties has expanded into the KwaZuluNatal housing market.
The expansion is in line with a strategic objective identified at the time of the company’s listing on the JSE in October, 2015.
Balwin chief executive Steve Brookes said yesterday that they had acquired a parcel of land in Ballito that could accommodate more than 2 500 apartments, which would be developed over eight years.
The development was expected to be launched during the current financial year, he added.
Land
Brookes said KwaZulu-Natal was a strategic growth area for Balwin and the company aimed to acquire more land for development.
He added that Balwin had opened an office in Umhlanga to commence operations and had appointed Anthony Diepenbroek to manage the division.
Diepenbroek was until August last year the chief executive of Zendai South Africa, which is part of Hong Kong Stock Exchange-listed Zendai Properties that acquired all the property assets in Modderfontein, previously owned by AECI.
Brookes said the Ballito acquisition had extended Balwin’s secured development pipeline to 33 786 apartments, which would be rolled out over about 10 years and sustain the company’s future growth.
Its developments continued to be in high demand, with strong sales experienced at a number of first-phase developments that were launched in the year to February, he said.
“We are particularly encouraged to see that our latest developments launched near the year-end have seen sustained demand and are achieving record pre-sales figures, despite the economic uncertainty that we are experiencing.” Brookes said Greenstone Crest in Johannesburg East and De Velde, which was Balwin’s first development in the Western Cape, sold out during the year.
Balwin launched six new developments during the year. They were Malakite and Amsterdam in Johannesburg, Grove Lane and The Blyde in Pretoria, The Sandown in the Western Cape and The Polo Fields, Balwin’s first development in Waterfall.
Brookes said pre-sales at Westlake and The Sandown had been pleasing, with more than 25 apartments a month sold at Westlake and 30 apartments a month at The Sandown. Polo Fields, which was launched in February, had achieved more than 300 presales and the first phase was expected to be handed over in August this year, he said.
Brookes added that several developments were launched just after the company’s yearend and all had experienced significant demand.
He said The Whisken in Johannesburg North and Kikuyu, Balwin’s first development in Waterfall Fields, achieved more than 200 presales while the first phase of The Jade in the Western Cape was almost sold out.
Balwin had 13 developments under construction during the financial year and sold 2711 apartments at an average selling price of R995000 a unit, which was in line with its forecast.
Earnings
Balwin yesterday reported a 7percent growth in headline earnings a share to 140.58c in the year to February, from 131.29c in the previous year.
Revenue rose 30 percent to R2.7 billion from R2.08bn.
Operating profit improved by almost 18 percent to R903.3million from R767.6m.
A final cash dividend a share of 31 cents was declared, increasing the total dividends a share for the year to 42c compared with 32.09c the previous year.
Brookes said the company had delivered an excellent performance, but they were mindful of the challenging economic conditions that lay ahead.
But he added that Balwin’s business model allowed for flexibility to rapidly adapt to prevailing market conditions and reduce risk.
Balwin shares rose 2.92 percent yesterday to close at R7.05 on the JSE.
Balwin has acquired land in Ballito on which it can develop 2 500 units over eight years.