Seen Here: Preggie Pillay, Chief Executive Officer of FNB Commercial Property Finance, is driving investment that shapes South Africa’s urban future. Through strategic funding of quality residential developments, he continues to champion sustainable growth, expand access to well-located housing and strengthen partnerships that unlock long-term value for communities and the property sector. Photo Credit: Supplied – FNB
JOHANNESBURG, South Africa – FNB Commercial Property Finance has strengthened its commitment to South Africa’s growing residential rental market by providing R470 million in funding to Balwin Properties for the development of The Klulee, a large-scale rental housing project in Linbro Park, Johannesburg.
The investment marks another milestone in the long-standing partnership between the two organisations and reflects growing confidence in the country’s build-to-rent sector as affordability pressures continue to reshape the residential property market.
Once completed in October 2029, The Klulee will deliver 532 modern apartments across three development phases, expanding the supply of professionally managed rental housing in one of Johannesburg’s fastest-growing urban nodes.
A major boost for the rental housing market
The Klulee development will be constructed in three phases, beginning with 210 apartments in Phase One, followed by 182 apartments in Phase Two and 140 apartments in the final phase.
The estate will offer a variety of one-, two- and three-bedroom apartments with monthly rentals ranging from R7 630 to R16 430, targeting professionals, young families and residents seeking secure, well-located accommodation.
The latest investment follows FNB’s successful financing of The Eastlake rental development in Modderfontein, where the bank invested R117 million in Balwin’s first purpose-built rental-only residential estate, completed in 2025.
Confidence in long-term urban growth
According to Preggie Pillay, Chief Executive Officer of FNB Commercial Property Finance, the funding demonstrates the bank’s confidence in both Balwin’s development capability and the long-term strength of South Africa’s rental property 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.”
Pillay said supporting large-scale developments such as The Klulee enables FNB to unlock investment into projects that directly address South Africa’s housing challenges while contributing to sustainable urban development.
“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.”
He added that increasing investment in accessible rental accommodation remains central to the bank’s strategy.
“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.”
Building on a successful partnership
For Steve Brookes, Chief Executive Officer of Balwin Properties, The Klulee represents another chapter in a partnership with FNB that has supported several flagship residential developments over the years.
Brookes highlighted the success of Thaba Eco Village in southern Johannesburg, one of Balwin’s largest mixed-use residential estates, which received funding from FNB in 2021.
“Balwin has enjoyed a long-standing relationship with FNB. In 2021, FNB funded one of our flagship developments, Thaba Eco Village in the south of Johannesburg, which remains a cornerstone in the Balwin property portfolio.”
He noted that the development has already delivered more than 16 phases supported by funding exceeding R750 million, with the completed estate expected to comprise more than 31 phases.
Rental demand continues to grow
Brookes believes South Africa’s changing economic landscape is accelerating demand for rental accommodation as many consumers postpone home ownership because of affordability constraints.
“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.”
He added that Balwin’s rental developments are designed not only to provide quality accommodation but also to serve as a stepping stone for future homeowners.
“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.”
Strengthening South Africa’s housing future
The Klulee development is expected to play an important role in increasing the supply of quality rental housing while supporting the densification of strategically located urban areas close to employment opportunities and essential services.
For FNB, the R470 million investment reinforces its broader strategy of financing developments that stimulate economic growth, expand housing opportunities and strengthen South Africa’s income-producing real estate sector.
As demand for professionally managed rental housing continues to rise, the partnership between FNB and Balwin demonstrates how strategic investment can help reshape South Africa’s residential property landscape while creating sustainable, accessible communities for future generations.
