Balwin Properties has published its financial results for the full year ending February 2020, with the group continuing to boast strong growth.
An increase in the number of apartments recognised in the current financial year contributed to revenue growth of 11% over the prior year. The average selling price per apartment of R1,063,667 (2019: R1,066,452) remained consistent.
The group’s gross profit margin for the year was 27.1% – although this represents an increase from the 24.5% reported for the interim period, the margin has decreased from 30.1% in the previous financial year.
Earnings per share and headline earnings per share both decreased by 8% to 88 cents (2019: 96 cents), it said.
“Demand for one- and two-bedroom apartments remained strong in the current period,” Balwin said.
“As previously communicated, the group has the ability to proactively adapt its apartment mix and block configuration to respond to market demand, and has continued the trend in the current year to introduce more affordable one-bedroom and two-bedroom apartments for sale.
“One- and two-bedroom apartments comprised 74% of the total apartments sold during the year.”
One of the key focuses of the group is its new Munyaka development, which is currently being built in Waterfall in Johannesburg.
The development is currently scheduled for completion by May 2028 and has 4,972 apartments in the pipeline. In February, Balwin said that the estimated cost of the development is R9 billion.
It will feature a massive crystal-clear ‘beach’ lagoon, with apartments designed to be just metres from the waterfront.
The development will feature one-, two- and three-bedroom apartments, which are fibre-ready, with Scandinavian-style kitchens, free eco-friendly appliances, a balcony for outdoor entertaining, and pre-paid water and electricity meters.
Construction of the lagoon, boundary wall, gatehouse, lifestyle centre and show apartment block has already commenced with the balance of apartments being rolled out over the next eight years.
“Munyaka, which translates to ‘Crystal’ in Venda, is set to be the crown jewel in our development portfolio,” said Steve Brookes, founder and chief executive of Balwin Properties.
“We have worked very closely with our architects to bring something exceptional to South African sectional title buyers and believe that it will not only set a new standard for lifestyle estate living in Waterfall, but indeed in the country.”
Brookes said that Balwin is further investing significantly in road infrastructure around Munyaka, having already completed a new road at a cost in excess of R100 million.