Balwin bags R1bn IFC funding for Mooikloof Smart City

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17-04-2025
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Moneyweb
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The money will go towards financing affordable housing.

JSE-listed sectional-title mega estate developer Balwin Properties has secured a R1 billion funding deal from the International Finance Corporation (IFC), which is part of the World Bank Group.

The IFC and Balwin announced the deal on Tuesday, saying the facility is being made available “to support the development of over 14 500 affordable apartments for buyers in Tshwane” as part of the company’s so-called Mooikloof Smart City project.

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They say the funding will “help increase the supply of affordable housing in the country”.

“IFC’s local currency ZAR1 billion loan for Balwin Properties will facilitate the construction of apartments within the Mooikloof node, a mixed-use lifestyle precinct located east of Pretoria and about 40km from Johannesburg,” it says.

“The apartments will be built to high environmental standards and include energy-efficient appliances, water-saving equipment, and insulation to minimise temperature fluctuations, enhancing sustainability and supporting South Africa’s transition to a lower-carbon economy.

“Each apartment will be certified by IFC’s Excellence in Design for Greater Efficiencies [EDGE] tool. The availability of the IFC’s loan facility is expected to promote job creation and economic growth through its impact on the local community and surrounding areas, deepening local supply chains, and improving business and residential infrastructure.”

In July 2020, Mooikloof Smart City was earmarked as a Strategic Integrated Project [SIP] in SA’s capital city by government.

The project also has the backing of President Cyril Ramaphosa, who officially launched the development with Balwin CEO Steve Brookes in October 2020.

“IFC’s strategic investment in Balwin underscores our commitment to expanding access to quality housing for low- to middle-income households, directly supporting South Africa’s National Development Plan,” says Cláudia Conceição, the IFC’s regional director for southern Africa.

“Housing is a catalyst for individual well-being, strong communities and overall economic growth, making it a key priority for IFC,” she adds.

“The support from IFC not only enables us to expand the availability of affordable housing but also reinforces our dedication to green building practices,” comments Brookes.

He says Balwin is now the world’s largest developer of EDGE Advanced certified apartments, which enable savings of more than 40% in energy, 20% in water, and 20% in embodied energy in materials compared to conventional building methods.

“Homeowners save on monthly utility charges through lower consumption as well as through potential lower bond repayments thanks to our Green Bonds with most major banks,” says Brookes.

“As urbanisation accelerates, we recognise the critical role the private sector must play in addressing the housing shortfall and we are proud to be part of the solution. Beyond housing, this investment will stimulate job creation, economic growth and local supply chains, strengthen the surrounding community and contribute to South Africa’s broader development goals,” he adds.

According to Balwin, with Mooikloof being a SIP designated by national government, this effectively means that the Department of Public Works and Infrastructure will pay for all external bulk services installations such as water, sewer, electricity, roads and stormwater drainage.

“The IFC loan facility will complement government’s investment into the bulk services infrastructure required to unlock the entire development,” it says.

The IFC says its “investment in Balwin aligns with the World Bank Group’s strategic focus in South Africa, which aims to leverage private finance to help bridge social infrastructure backlogs, including the shortage of housing”.