Home » South African tycoon Stephen Brookes loses $74.2 million in month as Balwin Properties shares slump by 18 percent

South African tycoon Stephen Brookes loses $74.2 million in month as Balwin Properties shares slump by 18 percent

by Mfonobong Nsehe
Stephen Brookes

South African multimillionaire businessman Stephen Brookes has recorded R1.18 billion ($74.2 million) in losses in the past 31 days, as shares in Balwin Properties slump by 18.2 percent.

Balwin is a residential property developer of large-scale estates for South Africa’s low-to-middle-income population. The group provides high-quality, environmentally efficient and affordable apartments, with an innovative lifestyle offering for residents.

Brookes, who founded the company in 1996, is the largest shareholder, with a substantial stake amounting to 170,374,031 shares, or 36.08 percent of the property developer’s total issued shares.

On Dec. 13, the South African businessman received an interim dividend of R12.61 million ($857,100) from his shareholding in Balwin Properties.

The recent decline in the market value of his stake can be linked to a sustained sell-down in Balwin’s shares, as investors trim down their exposure in the property developer despite a 44.3-percent surge in its profit at the end of the first half of its 2021 fiscal year.

As of press time, Dec. 16, shares in Balwin are worth R3.11 ($0.1948), 9.86-percent lower than their opening price on the Johannesburg Stock Exchange yesterday.

Since the opening of business and trading on Nov. 15, 31 days ago, the company’s share price has dropped from R3.8 ($0.2283) to R3.11 ($0.1948) as of the time of the drafting of this report. This translates to an 18-percent loss for shareholders.

As a result of the decline in the South African property developer’s share price, the market value of Brookes’ 36-percent stake fell from R5.62 billion ($352.42 million) to R1.02 billion ($288.43 million).

This translates to a R1.18-billion ($74.2 million) loss for the multimillionaire in 31 days.

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