South African real estate tycoon Stephen Brookes faces major market losses

Feyisayo Ajayi -

Key Points:

  • Stephen Brookes’ stake in Balwin Properties has dropped $3.56 million in the past month, due to a declining share price.
  • The South African developer’s stock is down 17.5%, pushing its market cap below $55 million.
  • Year-to-date, Balwin Properties’ share price has plummeted 15.67%, indicating significant potential risks for investors.

South African real estate tycoon Stephen Brookes, the founder of Balwin Properties, has experienced a significant decrease in the market value of his stake in the Johannesburg-based property developer Balwin Properties.

According to the data tracked by Billionaires.Africa, Brookes’ stake in Balwin Properties has declined by R66.45 million ($3.56 million) in the past 26 days. This loss compounds the $2 million loss recorded between March 20 and April 3, when his stake dipped from $17.34 million to $15.33 million.

Balwin Properties’ market cap falls below $55 million

Balwin Properties, known for its large-scale estates catering to South Africa’s low-to-middle-income population, prides itself on providing affordable and environmentally efficient apartments with innovative lifestyle offerings for residents.

Founded by Brookes in 1996, the company has established itself as a significant player in the South African real estate landscape, with Brookes holding a controlling stake of 36.08 percent in the company, equivalent to a total of 170,374,031 shares.

In recent times, the company’s shares on the Johannesburg Stock Exchange have declined from R2.22 ($0.12) on May 16 to R1.83 ($0.09) at the time of drafting this report, representing a 17.57-percent loss for shareholders, pushing its market capitalization below $55 million, leading to a loss for shareholders.

As a result of the decline in the company’s shares over the past weeks, the market value of Brookes’ stake in Balwin Properties has decreased by R66.45 million ($3.56 million) from R378.23 million ($20.24 million) on May 16, to R311.78 million ($16.69 million).

Your Money and Your Life

Balwin Properties has seen its share price tumble 15.67 percent year-to-date, raising concerns for investors. This decline translates to a $15,670 loss on a $100,000 investment made at the start of 2024, with the current value sitting at just $84,330.

Given this performance, investors considering Balwin Properties are recommended to approach with caution and conduct thorough due diligence before making any investment decisions.