Trematon’s joint deal with Balwin has lost momentum

DURBAN – JSE-listed investment group Trematon Capital Investments said last week that its joint venture with Balwin Rentals lost momentum in the six months to end February due to general weakness in the residential market. The group said it was not planning to make any new purchases in 2020.

Baldwin Rentals currently has a portfolio of 252 units and is achieving the projected yields and carrying values are market related.

Trematon entered into this venture in 2018, with an effective interest of 22.5percent, together with Buffet Investments, KLT Holdings and Balwin Properties to acquire residential units specifically built by Balwin Properties for the rental market.

The rest of its portfolio under Resi Investment Group and other residential property investments has been stable and has generated good returns due to very good entry prices.

But the group added that the market sector in which Resi operated, rentals between R5000 and R15000 a month, was robust, but there was a big pipeline of supply currently under development and material rental growth in the next 12 months was unlikely.