JSE-listed developer of large sectional-title estates, Balwin Properties, has secured the land for its planned R2 billion estate within KZN’s Westown mega development in a R133.7 million deal with private developers Fundamentum.
Balwin confirmed the acquisition in a Sens statement on the JSE after the market closed late on Friday, noting that the transaction is on a ‘pay-as-you-register’ basis. This means it has secured a sweet deal, with no upfront cost related to land and for bulk infrastructure rollout.
Balwin has dubbed its new estate Shongweni Park, which is anticipated to have 1 260 apartments. This is the group’s first foray in the west of Durban.
The company’s only other developments in KZN currently are a niche estate in Izinga (Umhlanga area) and a development in Ballito on the North Coast.
The Westown development is situated just past the burgeoning Hillcrest area, where JSE-listed property giant Growthpoint owns the Watercrest Mall and Hillcrest Corner shopping centre, and is invested in the Busamed Hillcrest Hospital.
“The property [for Shongweni Park] is adjacent to Westown Square which comprises of 50 000 square meters of retail. The construction of Westown Square and associate bulk infrastructure commenced in 2022 and is expected to be completed in early 2025 …,” it added.
“The Westown Development will consist of a hospital [a licence has been granted]; hotels; warehousing as well as logistics, business parks and schools.”
According to Balwin, it has been negotiating with the seller since 2022 to acquire the property for the Shongweni Park project.
The group noted that it “managed to agree to a ‘pay-as-you-register’ model, meaning that a contracted amount per apartment is paid to the seller on the registration of each apartment”.
Credit: Moneyweb - Suren Naidoo
Comments