JSE-listed Calgro M3 is developing the Bankenveld area of Johannesburg, with the group planning to add 20,000 homes near Sandton.
The new ‘city’ is located near Johannesburg and is being developed in a joint partnership between Calgro M3 and Momentum-owned Ellis Property Fund.
Located between Sandton and Waterfall, it is accessible via the M1 and N3 motorways and has easy access to Gautrain station on Marlborough Road.
The development features affordable housing, retail, lifestyle and amenities. Calgro M3 will offer residential units, while Eris will focus on industrial and commercial development.
In its latest financial results for the six months ended August 31, 2025, Calgro M3 said it was confident that the time it spent on urban design, urban planning and innovative building methods would lead to future profit growth and increased profits.
The group’s residential real estate development division saw a decline in revenue, due in part to the allocation of financial resources to cities.
The city has officially begun the installation of infrastructure in the current reporting period for Calgro M3.
The development will create more than 20,000 opportunities for Calgro M3 and the first phase of road infrastructure upgrades will begin, costing Calgro M3 R158 million over the 2026-2027 financial period.
Further infrastructure upgrades are also expected to begin at the same time in the 2027 financial period.
Calgro M3 is in negotiations with the public sector to finalize the Bankenveld District City infrastructure agreement.
All infrastructure installation and on-site work will continue to be performed as a private development.
These consultations and agreements with the public sector will enable Calgro M3 to serve the lower LSM (Low Standard of Living Standards) housing market within the development once concluded.
Financial summary
Calgro M3’s financial results reflect near-term revenue and profitability pressures due to changes in capital allocation to the Bankenveld District City project.
Installation revenue is recognized only upon completion of the public sector contract. Maintaining gross profit margins expanded our asset base and maintained liquidity.
Revenue from these facilities is recognized upon completion of the public sector contract.
Otherwise, the group has seen several other improvements across its operations. The group has cut its number of units by more than half.
The increase in sales is due to targeted marketing campaigns and unit sales to the real estate investor market.
“The growing demand for this segment of the market demonstrates the inherent value of our developments, with units returning high rental yields,” the group said.
“These units are considered to be close to employment opportunities, well-located, and offer selected lifestyle amenities, including security.”
In addition to this, the group’s other division, Memorial Parks, continued to show strong growth, with revenues increasing to R39.83 million (August 2024: R36.76 million).
The gross profit of the Memorial Parks sector increased to R20.07 million (August 2024: R19.03 million) and the profit margin remained at 50.39% (August 2024: 51.78%).
Overall, group revenue decreased by 10.16% from R512 million to R460 million.
Group profits and combined earnings per share decreased by approximately 18% to 83 cents per share. The group did not declare a dividend for the period.
Bankenveld district city images
