Building a multi-billion dollar smart city in South Africa (photos)

Written by: Mohammed Omran

Balwin Real Estate continues to pour huge sums into the Moiklov Smart City project, even into infrastructure projects that were supposed to be built by the state.

A multi-billion dollar smart city in South Africa

President Cyril Ramaphosa announced the Moikloof Smart City project in 2020 as one of the government’s integrated strategic projects.

The project is located next to Garsfontein Road on the outskirts of East Pretoria, and its total investment value is expected to reach 84 billion rand upon completion.

According to the project, Balwyn Real Estate is developing more than 14,000 residential units in the smart city, parts of which have already been occupied.

Balwyn received a loan of 1 billion rand from the International Finance Corporation, a member of the World Bank Group, in 2025 to finance the project.

Construction has also begun on the Greengate Lifestyle Centre, scheduled to open in April 2027, adding retail outlets to the smart city. The Mulman Group is leading the development of the retail sector.

This development is costing developers a great deal, with Balwin noting a significant increase in expenses.

In its latest financial results for the year ending February 28, 2026, Balwyn reported that the value of projects under construction rose to 6.9 billion rand.

The company added: “This increase was mainly concentrated in the Chuwanee region, driven by infrastructure spending for the next phase of the Moiklov Smart City project.”.

While the state was supposed to be responsible for developing the infrastructure according to the initial agreement, Balwyn has taken on this aspect so far.

MyBroadband had previously reported that Tshwane was not part of the project, citing a lack of funding. Balwyn believed the funding would come from the Ministry of Finance.

Balwin Company Financial Data

Despite the challenges faced by the smart city of Moiklov, the latest financial data from Balwin was fairly positive.

Chief Executive Officer Steve Brooks stated, “Fiscal year 2026 reflects a remarkable recovery from the most challenging trading period we have experienced since the company was founded in 1996.”.

He added: “This year’s improved figures should be viewed in light of the very low baseline set for 2025, as well as in the context of a macroeconomic cycle that remains unstable.”.

The handover of apartments and improved market conditions contributed to the growth of the group's revenues, with revenues jumping by 21% to reach 2.7 billion rand.

This increase in revenue is due to improved conditions in the residential real estate market and a recovery in apartment sales.

Apartment sales revenue rose by 22% to 2.4 billion rand, supported by a 17% increase in apartment deliveries, with 2053 apartments recorded in the revenue.

The Western Cape was the largest regional contributor, accounting for 54% of apartment sales revenue.

The group's earnings per share also increased by 5% to 52.36 cents, while net earnings per share increased by 4% to 47.72 cents.

Net asset value per share also rose by 71 TP3T to 976.89 cents. The group did not announce a dividend, focusing instead on prudent capital allocation and reducing its debt level.

“The Board of Directors will continue to monitor local and international market conditions and will reassess the appropriateness of announcing a dividend distribution for the fiscal year 2027.”

In discussing future prospects, Balwyn noted that demand for high-quality, affordable apartments that meet modern lifestyle needs remains consistent with the fundamentals of the South African housing market.

However, the group remains cautious about its outlook, despite a marked improvement in the business environment compared to last year.

She explained that renewed global and local inflation risks could affect purchasing power and consumer confidence.

Brooks said: “Balwyn has overcome a difficult period thanks to a stronger operating base and a clearer focus on costs.”
Discipline in capital management and product offerings remain highly relevant to the market.”.

He added: “The inflationary impact of the recent fuel price hikes has not yet fully materialized for consumers, and a medium-term rise in interest rates remains a possibility.”.

The CEO stressed that the priority will be protecting cash flow, gradually reducing the level of debt, and limiting operating and development costs.

He added that the group will also seek to transform a strong sales environment into sustainable profits, improve profit margins, and increase return on invested capital.