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FNB Commercial Property Finance has committed R470m to fund Balwin Properties’ newest rental housing development, The Klulee, in Linbro Park, Johannesburg.
The development will be built in three phases and is expected to be completed by October 2029. Once finished, it will comprise 532 apartments offering one-, two- and three-bedroom units, with monthly rentals ranging from R7,630 to R16,430.
Phase one will deliver 210 apartments, followed by 182 units in phase two and 140 units in the final phase.
The funding extends FNB and Balwin’s long-standing relationship and reflects both companies’ focus on the growing demand for rental housing.
The Klulee backing follows FNB’s R117m funding of Balwin’s Eastlake development in Modderfontein, which was completed in 2025. Eastlake was Balwin’s first rental-only development and is part of the group’s strategy to build a portfolio of income-generating residential assets alongside its traditional build-to-sell business.
FNB Commercial Property Finance CEO Preggie Pillay said the investment reflects the bank’s confidence in the residential rental market and in Balwin’s ability to deliver large-scale developments.
“Our long-standing relationship with Balwin aligns with our strategy to support developers and grow our exposure to residential and income-producing property,” Pillay said.
“By funding developments such as The Klulee, we are backing projects that respond to South Africa’s housing needs while supporting the growth of our business.”
Balwin CEO Steve Brookes said The Klulee builds on a partnership that has already funded several projects, including Thaba Eco-Village in southern Johannesburg.
“To date, we have delivered more than 16 phases with total funding exceeding R750m. Once complete, the development is expected to comprise more than 31 phases,” he said.
Brookes said demand for rental housing remains strong as affordability pressures make homeownership more difficult for many South Africans.
He added that rental developments can also provide a pathway to ownership for tenants who later choose to buy homes in Balwin’s build-to-sell developments.
The Klulee is expected to add to the supply of rental housing in Johannesburg while supporting higher-density urban development.
Sundays Times
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