FNB Commercial Property Finance has committed R470 million to fund Balwin Properties’ rental housing development, reinforcing its growing focus on South Africa’s expanding residential rental market.
The development, named The Klulee, located in Linbro Park, will be rolled out in three phases, delivering a total of 532 apartments by its targeted completion date of October 2029. Phase 1 will comprise 210 apartments, followed by 182 apartments in Phase 2 and 140 apartments in Phase 3. The development will offer a mix of one-, two- and three-bedroom apartments, with rentals ranging from R7 630 to R16 430 per month.
The latest financing underscores the continued partnership between FNB and Balwin Properties, as demand for secure, professionally managed rental accommodation strengthens in key urban areas.
The Klulee follows FNB’s R117 million funding of The Eastlake rental development in Modderfontein, which was completed in 2025. The Eastlake was Balwin’s first development delivered exclusively for rental, forming part of the group’s strategy to unlock its landbank quicker and build annuity income alongside its build-to-sell model.
The development was also delivered in phases and offers one-, two- and three-bedroom apartments, with rentals ranging from R7 599 to R15 999 per month. Preggie Pillay, FNB Commercial Property Finance CEO says, the funding reflects both the bank’s confidence in Balwin’s delivery capability and the long-term fundamentals of the rental housing market.
“Our long-standing relationship with Balwin reflects our broader Commercial Property Finance strategy to strengthen strategic partnerships with developers and continue to bolster our lending footprint in the residential sector and broader Income-Producing Real Estate (IPRE) sector.
By supporting quality, scalable developments such as The Klulee, we are not only strengthening our commitment to grow our business but also playing a meaningful role in unlocking capital for projects that respond to South Africa’s challenging housing demand,” says Pillay.
“We see significant opportunity to open funding for developments that deliver accessible, well-located rental stock at scale. Balwin remains a key strategic partner for us, and we are proud to support developments that contribute to sustainable urban growth and bring more South Africans to quality housing,” adds Pillay.
Steve Brookes, Balwin Properties CEO says the Klulee builds on a long track record of collaboration between Balwin and FNB.
“Balwin has enjoyed a long-standing relationship with FNB. In 2021, FNB funded one of our flagship developments, Thaba Echo-village in the South of Johannesburg, which remains a cornerstone in the Balwin property portfolio. To date, we have delivered more than 16 phases with a total funding of more than R750 million. Once completed, the development is expected to comprise more than 31 phases,” says Brookes.
“With affordability pressures persisting, the rental market is becoming increasingly attractive for our business. Demand has remained resilient despite broader economic pressure, while affordability constraints have tempered homeownership for many consumers.
These rental developments also create a pathway for tenants who may ultimately move from renting into ownership by purchasing a Balwin apartment in one of our build-to-sell developments,” says Brookes. The Klulee is expected to add further depth to rental market, while supporting the densification of well-located urban areas.