Balwin, a JSE-listed property firm, is expanding its business into fibre infrastructure to be rollout across its own estates.
The property firm, which is celebrating its 21st birthday in 2017, announced on Monday that a new subsidiary launched in 2017will own all fibre infrastructure across its estates/
The company added that it aims to become a large standalone fibre network operator in South Africa.
Balwin estates typically consist of between 500 and 1 500 sectional title residential apartments and are located in high-density, high-growth nodes across key metropolitan areas in Johannesburg, Pretoria, the Western Cape and KwaZulu-Natal.
The property group said it has secured pipeline of 35 595 apartments across 24 locations in key target nodes with a 10 to 12-year development horizon.
Balwin estates offer secure, affordable, high-quality, environmentally friendly and conveniently located one, two, and three bedroom sectional-title residential apartments, ranging in size from 45m2 to 120m2. Prices range from R699 999 to R1 799 000 per apartment (including modern fitted kitchen appliances) within the standard operating model.
The group said on Monday its revenue climbed by 19% to R894 million in the six months to end-August 2017.
The company attributed the strong growth in revenue to the higher selling prices at its upmarket developments.
“The average selling price per unit was R1.2 million versus R991 551 in 2016, which represents an increase of 23%. This increase is as a result of the sales of 107 apartments in the Polo Fields and 24 apartments in Paardevlei Square with an average selling price of R1.8 million and R2.4 million respectively being handed over to clients during the reporting period,” the company informed investors.
“The increase in the average selling price is also due to more two- and three-bedroom apartments being handed over. The average selling price is expected to remain flat due to the tough economic conditions currently being experienced in the market.”