Calgro M3 powers ahead with Bankenveld Build as housing demand surges

• Infrastructure begins at Bankenveld District City, a 20,000-unit mega-development.
• Strong demand for affordable housing and memorial parks supports resilient results.
• Over 2,589 serviced opportunities secure growth into the next financial year.

A Developer built for South Africa’s real housing demand

‍JSE-listed Calgro M3 is one of the country’s most specialised property groups, focused on two high-demand segments:

1. Integrated residential housing developments that span social, GAP and affordable markets; and
2. Privately owned Memorial Parks, a fast-growing alternative to traditional cemeteries.

Across Gauteng and the Western Cape, Calgro develops large-scale residential precincts that combine homes, schools, community infrastructure and secure amenities in one integrated ecosystem, allowing families to move up the housing ladder without leaving their communities.

Its Memorial Parks division, created to utilise land unsuited to housing development, has become a stable cash generator with strong, predictable lay-by sales and trusted private cemetery management.

The group has now released interim results for the six months ended 31 August 2025, showing stability, strategic discipline and strong progress in its next major project: Bankenveld District City.

CEO Perspective: Strategy, discipline and a reset for growth

‍CEO Ben Pierre Malherbe says the business has spent the past two years reshaping its strategy, realigning capital and reducing debt.

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“We’ve dedicated significant time to rethinking our operations,” he explains. “Our focus is on future opportunities that optimise the portfolio, reduce debt and position us for long-term, sustainable growth.”

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While buyer sentiment was muted early in the year, Malherbe notes a clear improvement in consumer appetite from July into August, an important signal for the affordable and mid-market segments Calgro serves.

Investor Snapshot: Core numbers and portfolio strength

Group Performance Highlights

• 2,589 serviced residential opportunities available
• 871 residential opportunities under construction
• Gross profit margin: 29.43%, well above the 20–25% target range
• Share buy-backs: 1,327,525 shares repurchased at R5.00 each
• Headline earnings per share: 82.86c (down from 100.87c)
• No interim dividend declared, consistent with policy
• Memorial Parks revenue: R39.83m (+9%)
• Memorial Parks gross profit: R20.07m

Bankenveld District City: Calgro’s next mega-node

Infrastructure installation has officially begun at Bankenveld—a long-term project expected to deliver more than 20,000 residential opportunities.

This reallocation of capital temporarily reduces short-term revenue but positions Calgro for a multi-year pipeline of high-demand, affordable units.

Housing Stock & Provincial Performance

• Western Cape activity increased significantly, with:
  • Final infrastructure stages completed at Belhar
  • Additional phases at Scottsdene completed and sold out
• Gauteng continues to anchor the pipeline, with:
  • Final bulk installations nearing completion at Fleurhof and Jabulani
  • Strategic land acquisitions underway around existing bulk infrastructure to reduce future development costs

Memorial Parks: A high-margin, high-demand growth segment

The division recorded:

• 66.23% growth in completed lay-by sales
• Cash collections of R51.64m
• Regulatory approvals finalised for Platinum City Memorial Park, enabling 28,000+ future burial opportunities

Once fully operational, further investments will be directed at replacing older parks and expanding the footprint.

Calgro’s structural pillars for long-term strength

Malherbe outlines the group’s refined strategic pillars:

1. Sale of non-core assets with no short-term development prospects
2. Rebalancing the residential and memorial parks segments to diversify income
3. Disciplined debt management aligned to market cap and portfolio size
4. Strategic skills development to deepen internal expertise

These priorities ensure capital efficiency, operational resilience and improved cash flow predictability.

A Business aligned with real South African demand

‍Calgro M3 operates where South Africa’s housing demand is real and growing, affordable homes near jobs, integrated communities, and dignified memorial parks designed for long-term sustainability.

With:

• a robust residential pipeline,
• thousands of serviced opportunities ready for delivery,
• accelerating work at Bankenveld District City,
• rising Western Cape activity,
• strong Memorial Parks cash generation, and
• disciplined capital allocation,

The group is positioned for stable, value-driven growth into FY2026.

Market sentiment is improving, interest rate relief is filtering through, and investor appetite for well-located affordable housing remains strong. Calgro’s sharpened strategic focus gives it a clear runway to capture this demand, delivering value for shareholders, homeowners and communities across South Africa.

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