Balwin Properties Limited and Transcend Residential Property Fund have announced a strategic alliance with the intention to deliver up to 8,900 quality affordable rental apartments across five developments in key Gauteng nodes over the next six years.
Balwin will design and construct each development and sectional title apartment. Balwin will also market and secure lease agreements with prospective tenants. Transcend will then have the opportunity to purchase fully tenanted apartments in phases from Balwin.
Balwin Properties CEO, Steve Brookes, commented: “Today’s announcement is fantastic news for the rental housing market in South Africa. The planned developments worth ±R6.4 billion will see us deliver up to 8,900 premium apartments offering quality finishes not yet seen in the affordable rental market.
“Transcend’s focus on predominantly walk-up apartments strategically located in desirable neighbourhoods and often equipped with lifestyle-enhancing facilities is perfectly in line with Balwin’s proven development model and popular design.
“This new rental product supplements our existing build-to-sell business and we have put in place capacity to support the additional volumes over the ±3,000 apartments we already deliver every year.”
Subject to the requisite approvals, “Green Park”, comprising 1,200 apartments, is the first development for this alliance. Located in Boksburg, the first apartments are expected to be delivered to Transcend in early 2018. The development, amongst other lifestyle facilities, will make use of solar energy solutions and provide high-speed fibre connectivity.
Transcend is a Real Estate Investment Trust (REIT) created by International Housing Solutions (IHS) and listed on the JSE in 2016. Transcend focuses on specialised residential property assets and currently holds a portfolio of 13 properties, comprising 2,472 units, located primarily in Gauteng, the Western Cape and Mpumalanga.
Rob Wesselo, CEO of Transcend, said: “This alliance is perfectly in line with our strategy to deliver affordable housing rentals to an underserviced portion of the real estate market outside conventional inner-city residential rental housing. Rentals will be aligned with Transcend’s portfolio and are expected to range from R4,000 to R8,000 – currently the sweet spot for a growing middle class in South Africa’s urban centres.”
More information at www.balwin.co.za or:www.transcendproperty.co.za
