Construction of the new Bankenveld District City has begun, with the first infrastructure breaking ground.
The new ‘city’ will be located in Johannesburg and will form part of a joint partnership between Calgro M3 and Momentum-owned Ellis Property Fund. The parties acquired the land in September last year.
District City will integrate affordable housing, retail, lifestyle, amenities and open green space. In 2024, it was valued at R18 billion.
Calgro M3 will provide approximately 20,000 homes in the development, while Ellis will be responsible for industrial and commercial development in the area.
The city will also have an estimated 600,000 square meters of retail, office, commercial, education and medical space, as well as a 30,000 square meter shopping centre.
The city is located in the north of Johannesburg between Sandton and Waterfall and is accessible via the M1 and N3 motorways. It will also be adjacent to Marlborough Road Gautrain station.
Calgro M3 said in its latest annual report on financial results that the development of a large greenfield property in the Sandton area presents significant opportunities for the group.
It was noted that the first phase of infrastructure was launched in the second quarter of 2025, laying the first foundations for further development.
The group said the new mega-housing development would meet Johannesburg’s needs to increase density and reduce urban sprawl.
Calgro added that the development will optimize Johannesburg’s existing infrastructure and meet the safety and quality needs of new homeowners.
The group added that the project aims to foster socio-economic uplift on an unprecedented scale.
“Strategically located, bridging the gap between affordability and access to Sandton’s economic hub, Bankenveld District City will be a testament to innovative planning and sustainable development,” the report said.
He added that the project will benefit from the past 10 years of experience in meeting market demand for quality recreational space, parking and access to transport routes.
We will draw on past learnings to ensure that integrated development meets the needs of the South African market over the next 20 years.
The development is also part of Calgro’s current large-scale development pipeline, alongside Fleurhof, South Hills and Belhar, and is expected to provide over 35,000 housing opportunities.
Despite the group’s excitement about the development, patience will be required to see the first housing units.
The schedule shows that the housing units will be built in just three years of development, with basic infrastructure installed first.
Other projects for the dead and buried
Although Calgro M3’s main business is residential development, the group also specializes in memorial parks and has performed well in a difficult year.
In the last financial year, group revenue and profits fell by 32.7% to R869 million, while profits fell by 15.2% to R166 million.
The company’s profits also fell over the same period, with earnings per share falling from 191 cents to 171 cents. Composite earnings per share also decreased from 189 cents to 171 cents.
That said, Calgro M3 achieved solid growth in its memorial park business during this period. The division’s revenue increased by 41.2% and its profit accounted for 17% of the group’s total.
The Memorial Park project is a relatively new field for Calgro, having started as a pilot project in 2017.
After the opening of the first memorial park in Nasrec, the business expanded to six locations across the country and includes more than 100,000 burial sites.
This has become a highly profitable business for the group, with an estimated value of R2.7 billion. The group expects the project’s total turnover to reach more than R2.5 billion across its six current locations.
