Balwin to buy Umhlanga property from Tongaat for R167m

19th February 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

JSE-listed Balwin Properties has concluded an agreement to buy, from Tongaat Hulett Development, Portion 3 & 4 of Erf 3465 Umhlanga Rocks; Portion 6 of ERF 3465 Umhlanga Rocks; the remainder of Erf 3434 Umhlanga Rocks; and the remainder of Erf 3465 and 3457 Umhlanga Rocks, measuring 64 ha in extent, for R167.26-million.

The properties are situated within the Izinga Precinct north of Umhlanga Ridge and above the town of Umhlanga Rocks, and is close to the commercial hub of Umhlanga.

A portion of the properties is zoned and will be serviced for immediate construction of 335 residential apartments.

Balwin intends to obtain rights for a minimum of 1 286 residential apartments which will be built on the remainder of the properties and all phases will be linked into one development.

Balwin has been negotiating with Tongaat since 2018 to acquire the properties which are the last remaining significant portion of developable land with an Umhlanga address.

The acquisition is aligned with the strategic objectives highlighted in Balwin’s 2019 Integrated Annual Report to expand its development operations in KwaZulu-Natal.

The purchase consideration will be funded from a combination of existing cash reserves and new bank debt. The bank debt will be ring-fenced to the development to be completed on the properties being acquired.

Subsequent to the new bank debt being obtained, Balwin’s total debt to equity ratio will remain within the 50% target threshold as mandated by the board.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION