Balwin, a construction and property group focusing on large scale sectional-title residential estates in high-growth, high-density metropolitan nodes in South Africa’s major cities, says it has launched a new subsidiary to provide fibre infrastructure.
The group released its interim results for the six months ended August 2017, on Monday, showing that revenue increased 19% to R894 million driven by good sales volumes which were in line with forecasts.
Steve Brookes, CEO and founder of Balwin said: “We remain highly innovative and continuously drive initiatives to differentiate our product. A new business segment was launched to generate annuity income, including through partnerships to implement solar energy solutions, the leasing of education facilities to experienced and robust operators, storage solutions and fibre infrastructure within the Balwin estates.”
The fibre infrastructure model is being run through Balwin Fibre, a new subsidiary of Balwin Properties, that will own all Fibre infrastructure across Balwin estates going forward with the aim of becoming a large fibre network operator in South Africa.
Balwin said launched four new developments in the first half of the year with 14 developments now underway. The average selling price of R1,218,088 per unit was higher during the period.
“Looking ahead, the increased scale brought about by the new developments, the delayed projects coming onstream, costs controls, operational efficiencies and the benefit of new annuity income initiatives such as fibre, solar energy solutions, storage and education will support the company’s performance.
“We will also continue to focus on delivering on our rental model through strategic alliances such as the one announced with Transcend in August,” said Brookes.