Cape Town – A strategic alliance between a JSE-listed firm and a real estate investment trust (REIT) will bring about 8 900 new affordable rental apartments to Gauteng in a deal worth about R6.4bn.
The alliance between Balwin Properties and Transcend Residential Property Fund was announced on Monday.
The apartments are set to hit the sweet spot for Gauteng’s rising middle class, according to Transcend CEO Rob Wesselo.
“Rentals will be aligned with Transcend’s portfolio and are expected to range from R4 000 to R8 000 which is currently the sweet spot for a growing middle class in South Africa’s urban centres,” said Wesselo in a statement.
Balwin will be responsible for the design and construction and will market and secure lease agreements for the apartments. Transcend will then purchase fully tenanted apartments in phases from Balwin.
“The planned developments worth an estimated R6.4bn will see us deliver up to 8 900 premium apartments expertly designed to offer quality finishes not yet seen in the affordable rental market,” said Balwin CEO Steve Brookes.
Green Park, a building with 1 200 apartments in Boksburg, is the first development earmarked for this alliance, subject to approvals and set to be completed in 2018.
A memorandum of understanding was signed on August 18, detailing this strategic alliance. It remains subject to the fulfilment of certain conditions including various regulatory, shareholder and other approvals to the extent required, it was explained.
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