Balwin Properties acquire development rights in Johannesburg’s Waterfall node for R1.5bn

Posted On Monday, 14 December 2015 06:00 Published by
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Balwin Properties acquire development rights from Portimix in Johannesburg’s Kyalami and Waterfall node for R1.5bn.


The development rights in Johannesburg’s Kyalami / Waterfall node comprise of approximate 15,000 residential sectional title units to be developed.

The board of directors of Balwin is pleased to announce that pursuant to its negotiations, Balwin has concluded a nonbinding conditional agreement with Portimix Proprietary Limited (“Portimix”), in terms of which Balwin will acquire development rights in Johannesburg’s Kyalami / Waterfall node, which development rights are anticipated to be developed over an 8 – 10 year period commencing on 1 January 2017. The acquisition of the following development rights from Portimix, the owner of the development rights, are not inter-conditional upon the acquisition of the other and are subject to the conditions precedent set out below. 

  • Polo Fields, development rights for approximately 30.8 hectares; 
  • Waterfall Fields, development rights for approximately 126.0 hectares; and 
  • Waterfall Village, development rights for approximately 76.0 hectares. 

Balwin is a specialist, niche, national large-scale, turnkey, sectional-title, residential property builder and developer (typically between 500 – 1,000 sectional-title residential units per development) targeting high-density, high-growth metropolitan areas in Johannesburg, Pretoria and Cape Town. One of the Company’s key strategic objectives is to acquire / secure land to facilitate the roll-out of further large-scale sectional-title residential developments in its target nodes. 

The Proposed Acquisition will grow the Company’s secured development pipeline by in excess of approximately 6 years and will establish Balwin as the leading residential property builder and developer in the middle income market segment within the Kyalami / Waterfall node.

Balwin believes the node to be of strategic importance with a strong demand for residential units within Balwin’s target price range due to, inter alia: 

  • ongoing plans to establish a central business district in direct proximity of the node (this has resulted in a number of key corporates relocating to the node, the commencement of development of the Mall of Africa, etc.); 
  • proximity of the node to the Sandton central business district, Fourways and Centurion and along Gauteng’s main highway routes and the Gautrain;  and  
  • current unavailability of secure, affordable, high-quality, environmentally friendly and conveniently located sectional-title residential units appealing to middle income market segment within the node. 

The consideration payable in respect of the Proposed Acquisition, which Balwin anticipates to fund out of internal cash resources and third party borrowings, has been structured to permit for fixed payments together with ongoing payments of 15% of the selling price of a unit on the date of transfer of said unit by Balwin. 

Those payments set out alongside a set / fixed date reflect the “fixed” payments in respect of each of the development rights, whilst the payments set out alongside a date range reflect the sum of the “ongoing” payments of 15% of the selling price of a unit over the course of that time period. 

Last modified on Tuesday, 15 December 2015 08:42

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