End of an era for South Africa’s largest housing developer

Finance Minister Enoch Godongwana provided details about the Public Investment Corporation’s (PIC’s) part in the R1.1 billion Balwin acquisition.

Balwin is South Africa’s largest housing developer, building 3,000 houses a year, mostly in the affordable segment of the market.

The company was founded in 1996 by CEO Steve Brookes and was listed on the Johannesburg Stock Exchange in 2015.

It specialises in developing large-scale, sectional-title estates in Gauteng, the Western Cape, and KwaZulu-Natal.

Balwin has seen significant operational and physical growth, with its total assets increasing from R1.48 billion in 2015 to R8.3 billion in 2026.

However, its share price did not track this growth. Instead, it decreased from R10.25 on debut to R3.12 in April 2026.

A consortium backed by PIC and founders Steve Brookes and Rodney Grey felt it provided a takeover and delisting opportunity.

They said Balwin was trading at a discount, had poor liquidity, and offered a good exit price, which could unlock value to all stakeholders.

The consortium established a new company, BidCo, wholly owned by Volker Holdings, which is controlled by Brookes, to implement the proposed transaction.

Godongwana said that, following the transaction, BidCo will own 100% of Balwin Properties and will be jointly owned by a consortium of investors.

This consortium of investors, listed below, will collectively exercise control over BidCo.

• GEPF, represented by the PIC – 49.3%
• Volker Holdings – 33.6%
• Rodna Investments – 9.6%
• GRE Africa – 7.5%

Balwin Properties will delist from the JSE and A2X on 20 October 2026, pending final conditions regarding the deal.

This will bring an end to the company’s 11-year tenure on the Johannesburg Stock Exchange and mark the start of a new chapter as a private company.

Balwin Properties’ future

Under the new ownership structure, Balwin will continue to operate its businesses on the same basis on which they currently operate.

The core nature of the business is not expected to change significantly pursuant to the transaction.

The consortium plans to work in partnership with Balwin’s existing executive management team to enhance the value of the company’s assets.

They will continue to support the development of affordable residential sectional title estate developments in South Africa

Balwin will leverage the consortium’s capital resources, strategic networks, and developmental focus to support its growth objectives.

Delisting will also allow the business to realise cost savings by eliminating the expenses associated with maintaining a listed public company.

The composition of the Balwin Board will be restructured to align with the governance requirements of an unlisted company.

It is anticipated that the non-executive directors of Balwin will resign once the delisting is implemented, and their remuneration will therefore stop.

Additionally, representatives from the PIC, as the biggest shareholder, are expected to be elected to the new Bidco Board.