Property developer Balwin Properties aims to raise between R713-million and R1.6-billion ahead of its listing on the real estate holding and development sector of the JSE on October 15.
It would use the funds to settle existing debt facilities and fund future development activities and land acquisitions.
The sectional title estate developer said on Friday that it would embark on a private placement of new ordinary shares priced at between R8.51 and R9.88 apiece with qualifying institutional investors, invited investors and private clients of selected stockbroking companies in South Africa.
“We are pleased to be progressing with Balwin’s listing to enhance our public profile, provide improved access to capital and support our overall growth objectives,” said CEO and founder Stephen Brookes in a statement.
This emerged as the firm was in negotiations to acquire additional land parcels for 15 000 residential units in Kyalami, with additional plans to develop, retain and manage a R3-billion rental portfolio of 2 000 to 3 000 units by 2020.
“We are on track to sell over 1 800 units this year and deliver an after-tax profit of around R550-million for the financial year to February 2016,” he added.
Balwin generated profit through the development and sale of large-scale residential estates averaging between 500 and 1 000 one-, two- and three-bedroom units ranging in size from 45 m2 to 120 m2 aimed at middle-income citizens.
Investec Bank is the corporate adviser, bookrunner and sponsor for the offer, which closes on October 8.