The share price of Balwin Properties climbed 5.15% to close at R6.94 on Monday after it announced it had formed a strategic alliance with listed residential property owner Transcend to bring to market up to 8,900 affordable rental apartments worth a total of R6.4bn. This will cover five developments in key Gauteng nodes over the next six years. The market welcomed the news from Balwin, the share price of which has come under pressure over the past year because of negative sentiment on new property developments. Keith McLachlan, fund manager at AlphaWealth, said SA’s economy was in the doldrums, which put developers such as Balwin under pressure. Balwin had also developed properties to sell, which meant its income received was reliant on the transfer of actual sales, said McLachlan. Investors have been hungry for varied listed residential property offerings. Less than 5% of the listed property sector contains residential property but demand for rental accommodation is high across the...
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