Picture: THINKSTOCK
Picture: THINKSTOCK

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BALWIN Properties, which focuses on sectional title residential estates in high-density metropolitan nodes, has acquired development rights in Johannesburg’s fast-growing Waterfall node for R1.5bn.

The proposed acquisition will grow the company’s secured development pipeline by more than six years and will establish Balwin as the leading residential property builder and developer in the middle-income market segment within the Kyalami Waterfall node," said CEO Stephen Brookes on Monday.

The recently listed developer said it had bought the rights from private company Portimix. Mr Brookes said the rights encompassed 232.8ha of land on which 15,000 residential sectional title units would be built over eight to 10 years, starting on January 1 2017.

Balwin’s target market has been buyers in the price range of R600,000-R1.7m. They are considered to be buyers in the mid to high living standards measures.

But Mr Brookes said the Waterfall residential development rights had widened this market. The development rights could be broken into three parts and the price of residential units would vary across these segments. These parts are the 30.8ha Polo Fields, the 126ha Waterfall Fields and the 76ha Waterfall Village.

"This deal was flagged as a potential opportunity by the management team at the point of listing. This is a big transaction for Balwin and will be its largest source of pipeline to be developed out over the next decade," Investec Asset Management portfolio manager Peter Clark said.

The site is in a good location and will be supported by the growing residential demand from the newly established node, where there has already been significant commercial development," he said.