Calgro exercises option to develop Bankenveld District City
The development near Sandton is expected to deliver 20,000-30,000 housing units
02 April 2024 - 08:29
byJACQUELINE MACKENZIE
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Calgro M3 CEO Wikus Lategan. Picture: SUNDAY TIMES
Property developer Calgro M3 has exercised an option to take up a transformative project — Bankenveld District City — near Sandton, north of Johannesburg.
On March 1, the joint venture partnership between Calgro M3 and Eris Property Group formalised the acquisition of a strategic land parcel, marking the commencement of the Bankenveld District City development, it said on Tuesday.
The development is expected to deliver 20,000-30,000 housing units alongside commercial, retail and industrial spaces.
About 34% of the land is dedicated to infrastructure, including roads, stormwater management, and recreational and green belt areas.
In terms of the JV agreement, both parties will share the cost of the infrastructure installation required for the development.
Calgro M3 will then be responsible for the residential components, while Eris will handle the commercial, retail, industrial, educational and healthcare components for their own benefit.
Bankenveld District City was a visionary project aimed at promoting socioeconomic upliftment on an unprecedented scale, it said.
“Strategically situated to bridge the gap between affordability and access to Sandton’s economic hub, Bankenveld District City will be a testament to innovative planning and sustainable development,” Calgro said.
The project, with the potential of generating more than R18bn in revenue, marks a significant milestone, more than doubling Calgro M3’s existing project pipeline.
According to its interim results for the period to end-August 2023, Calgro M3 had a property pipeline of R15.5bn, consisting of 20,239 units. The company was active across eight projects and had 2,118 units under construction at the time.
“This financial injection is expected to support the company’s correct valuation, reflecting the development’s substantial value and impact on the communities Calgro M3 serves,” it said.
In February, Calgro said it expected a profit jump of as much as 20% for the year to end-February.
Headline earnings per share (HEPS) were expected to rise as much as 20% to about 183.82c, it said in a trading update.
The R570m JSE-listed group attributed the enhanced earnings to improved performances in both its developments and memorial parks segments, coupled with a share buyback programme of almost R73m.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Calgro exercises option to develop Bankenveld District City
The development near Sandton is expected to deliver 20,000-30,000 housing units
Property developer Calgro M3 has exercised an option to take up a transformative project — Bankenveld District City — near Sandton, north of Johannesburg.
On March 1, the joint venture partnership between Calgro M3 and Eris Property Group formalised the acquisition of a strategic land parcel, marking the commencement of the Bankenveld District City development, it said on Tuesday.
The development is expected to deliver 20,000-30,000 housing units alongside commercial, retail and industrial spaces.
About 34% of the land is dedicated to infrastructure, including roads, stormwater management, and recreational and green belt areas.
In terms of the JV agreement, both parties will share the cost of the infrastructure installation required for the development.
Calgro M3 will then be responsible for the residential components, while Eris will handle the commercial, retail, industrial, educational and healthcare components for their own benefit.
Bankenveld District City was a visionary project aimed at promoting socioeconomic upliftment on an unprecedented scale, it said.
“Strategically situated to bridge the gap between affordability and access to Sandton’s economic hub, Bankenveld District City will be a testament to innovative planning and sustainable development,” Calgro said.
The project, with the potential of generating more than R18bn in revenue, marks a significant milestone, more than doubling Calgro M3’s existing project pipeline.
According to its interim results for the period to end-August 2023, Calgro M3 had a property pipeline of R15.5bn, consisting of 20,239 units. The company was active across eight projects and had 2,118 units under construction at the time.
“This financial injection is expected to support the company’s correct valuation, reflecting the development’s substantial value and impact on the communities Calgro M3 serves,” it said.
In February, Calgro said it expected a profit jump of as much as 20% for the year to end-February.
Headline earnings per share (HEPS) were expected to rise as much as 20% to about 183.82c, it said in a trading update.
The R570m JSE-listed group attributed the enhanced earnings to improved performances in both its developments and memorial parks segments, coupled with a share buyback programme of almost R73m.
mackenziej@arena.africa
Calgro M3 flags earnings jump
Residential property sales boost Calgro M3 revenue
Calgro M3 shares jump after flagging profit rise
Calgro’s back from the brink
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.