Rising infrastructure costs at the Mooikloof Smart City development pushed Balwin Properties’ developments under construction to R6.9bn in the year ended 28 February 2026, as the group also warned that fuel-price inflation and the possibility of higher interest rates could place further pressure on consumers and the residential property market.
Source: Balwin Properties. Mooikloof Mega City was announced by president Cyril Ramaphosa in 2020, and is one of 62 Strategic Integrated Projects (SIPs) gazetted in 2020.
“The increase was predominantly concentrated in the Tshwane node, driven by infrastructure expenditure for the next phase of the Mooikloof Smart City development,” the company said.
Mooikloof Smart City was announced in 2020 by Cyril Ramaphosa as one of government’s Strategic Integrated Projects (SIPs). Located next to Garsfontein Road in Pretoria East, the development is expected to attract a total investment of R84bn once completed.
Balwin is developing more than 14,000 residential units at the smart city, with parts of the development already occupied. The company also secured a R1bn loan from the International Finance Corporation (IFC), part of the World Bank Group, in 2025 to support the project.
Construction has also begun on the Greengate Lifestyle Centre, a retail development led by the Moolman Group and scheduled to open in April 2027.
Growth despite pressures
Even with the increased infrastructure burden, Balwin reported an improvement in its financial performance for 2026. Chief executive officer Steve Brookes said the year reflected a recovery from what he described as the company’s toughest trading period since its founding in 1996.
Revenue increased by 21% to R2.7bn, driven by improved residential market conditions and stronger apartment sales. Revenue from apartment sales rose by 22% to R2.4bn, supported by a 17% increase in apartment handovers to 2,053 units.
The Western Cape accounted for 54% of apartment sales revenue during the year.
Earnings per share increased by 5% to 52.36 cents per share, while headline earnings per share rose by 4% to 47.72 cents per share. Net asset value per share climbed 7% to 976.89 cents per share.
The group did not declare a dividend, saying it remained focused on prudent capital allocation and reducing debt exposure. Balwin said it would continue monitoring local and international market conditions before reconsidering a dividend for the 2027 financial year.
