THE G SPOT
Can Balwin avoid the curse of the new HQ?
What seems a lavish splurge on a new property has shareholders aghast. But Balwin CEO Steve Brookes says the decision is the right one for the fast-growing residential property developer
The market was aghast at Balwin’s decision to spend about 7% of its market cap — R125.8m — on a new head office building in Melrose Arch, Joburg, next to the M1 highway. Shares in the property developer were already under pressure and stumbled further, taking Balwin stock down 13% year to date. The FM spoke to CEO Steve Brookes.
How do you defend this purchase?..