Massive affordable homes project set to launch on Sandton’s doorstep in 2023

 ·18 Oct 2022

JSE-listed Calgro M3, the property and property-related investment company, says it will build 20,000 affordable homes between Kelvin in Sandton and Alexandra township in Johannesburg.

“With the next big project for the Group, Frankenwald integrated development, expected to come on stream in mid-2023 we are delighted about plans to enhance the face of affordable homes on the doorstep of Sandton,” the group said in a statement on Tuesday (18 August).

The group will build 30,000 housing units as part of its Frankenwald development, which gained approval in August.

Calgro M3, which specialises in the development of integrated residential developments and the development and management of Memorial Parks, published results for the six months ended August 2022, showing an increase in revenue to R607 million, from R576 million a year earlier.

CEO of Calgro M3, Wikus Lategan, said the group’s current pipeline comprises more than 24,000 opportunities, with an approximate revenue of R15.9 billion across nine projects, excluding the Frankenwald project, which aims to add a further 20,000 opportunities to the pipeline in mid-2023.

This is when Calgro M3 expects to exercise the land acquisition option, bringing the total pipeline to more than 40,000 opportunities (R30 billion) for the group.

With regards to Frankenwald, Lategan said that the Urban Development Framework was approved in August 2022, a considerable milestone for the preplanning phase of the project, located between Buccleuch, Kelvin, Alexandra and Linbro Park.

“We are committed to exercising the land option at the end of June 2023 and are confident in our ability to fund the option payment from internally generated cash resources, unlocking more than 20 000 additional residential units across eight distinct income groups.”

Of benefit is the availability of electricity for the first 11,085 units, including bulk infrastructure, which means that the first phase capital requirements for the project are lower than a standard integrated project would generally require, he said.

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