Balwin Properties, a residential developer, has left the Johannesburg Stock Exchange (JSE) and transitioned into private ownership following shareholder approval and fulfillment of the necessary requirements for its R2.26bn transaction. This move concludes almost 11 years of being a publicly traded company. The company's founder, Steve Brookes, and Managing Director, Rodney Gray, will retain their investment in the business, alongside the Public Investment Corporation (PIC), which acts on behalf of the Government Employees Pension Fund (GEPF).
The transaction, which received 98.48% support from eligible shareholders, saw participating shareholders receive R4.35 per share in cash. Brookes emphasized that the change in ownership does not affect the company's leadership or its commitment to the business. He expressed his ongoing commitment, stating that he founded Balwin 30 years ago and remains as dedicated to the business today as he was then. Brookes and Gray are reinvesting in the company because they believe in Balwin, its people, and its development pipeline.
The transition to private ownership provides Balwin with greater flexibility to pursue its development pipeline while maintaining the existing management team. During its years on the public market, Balwin has grown significantly, delivering approximately 26,000 apartments and generating R28.3bn in sales revenue. The company has also paid almost R1bn in dividends and completed its 100th residential development in 2025. This growth has been achieved under the leadership of Brookes and Gray, who have been instrumental in shaping the group over the past three decades.
Brookes acknowledged the positive impact of being listed on the JSE, stating that it helped strengthen the company’s governance and discipline. He noted that the discipline and accountability that came with being listed are now integral to how Balwin runs its business. The company will continue to focus on residential development, while also growing its annuity business and an emerging build-to-rent platform. This strategic approach aims to leverage the company's strengths and explore new opportunities in the market.
The delisting marks the beginning of a new chapter for Balwin, rather than a departure from the business Brookes founded. He emphasized that the focus now is on taking the business forward and continuing to build on the foundation created over the past 30 years. The private ownership structure is expected to support Balwin's next phase of growth, free from the scrutiny and demands of the listed market. This change is anticipated to enhance the company's ability to execute its strategy and achieve its objectives.
Under the current leadership, Balwin has established itself as a significant player in the residential development sector. The company's growth and achievements over the years reflect the effectiveness of its business model and the strength of its management team. As Balwin moves into private ownership, it will be closely watched by industry stakeholders and investors to see how it leverages its new structure to drive future growth and success.
The deal also highlights the ongoing interest of the Public Investment Corporation (PIC) in supporting key sectors of the economy. As an investor on behalf of the Government Employees Pension Fund (GEPF), the PIC's involvement in the transaction underscores its commitment to fostering growth and development in strategic industries. The PIC's continued investment in Balwin reflects confidence in the company's leadership and its potential for future growth.
Key points
- Balwin Properties has exited the JSE in a R2.26bn deal, transitioning into private ownership.
- The company's leadership, including founder Steve Brookes and MD Rodney Gray, will retain their investment in the business.
- The delisting is expected to provide Balwin with greater flexibility to pursue its development pipeline and growth strategy.
