THE GHOST TRAIN
THE FINANCE GHOST: Balwin’s bad BEE timing
By a long shot, Balwin’s deal is not the worst example of a BBBEE ownership structure. The timing is a bigger problem
In mid-2020, when I started writing for the FM supplement Investors Monthly, one of the first companies I looked at was Balwin Properties. I’m not a fan of property, but Balwin’s model of building estates that appeal to the upwardly mobile is not a bad place to play.
As the company’s projects became increasingly ambitious, I was struck by an obvious risk: it had not undertaken an empowerment deal. Large developments require approvals from municipalities and other authorities, creating a touchpoint with the government and thus an opportunity for pressure to be applied on the broad-based BEE (BBBEE) rating...
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