JSE-listed Balwin Properties and Transcend Residential Property Fund have entered into a strategic alliance to bring to market up to 8 900 quality, affordable rental apartments across five developments in key Gauteng nodes over the next six years.
Balwin will be responsible for the design and construction of each development and sectional title apartment, as well as for marketing and securing lease agreements for the apartments with prospective tenants.
Transcend will buy fully tenanted apartments from Balwin in phases.
Transcend intends to participate in all five developments, but each development will be treated and reviewed independently.
“The planned developments, worth an estimated R6.4-billion, will see us deliver up to 8 900 premium apartments designed to offer quality finishes not yet seen in the affordable rental market,” Balwin CEO Steve Brookes said in a statement.
He added that Transcend’s focus on predominantly walk-up apartments strategically located in desirable neighbourhoods and often equipped with lifestyle-enhancing facilities was 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 and above the approximately 3 000 apartments which we already deliver every year,” he noted.
Subject to the requisite approvals, Green Park, comprising about 1 200 apartments, will be the first development to be built under this strategic alliance. Located in Boksburg, the first apartments are expected to be delivered to Transcend in early 2018.