New ‘city’ coming to South Africa’s richest region

 ·13 May 2024

Calgro M3 has declared its first-ever dividend payout, and a new “city” near Sandton is in the pipeline for development.

In March, Calgro M3 and Eris Property Group exercised the option to purchase the Frankenwald property from The University of the Witwatersrand.

The option was exercised via the Bankenveld District City Ltd joint venture, which is 50% owned by Calgro M3 and Eris.

Bankenveld is set to deliver 20,000 to 30,000 housing units alongside commercial, retail and industrial spaces.

The development is situated between Sandton and Waterfall and will be accessible via the M1 and N3 highways. ‘

The joint venture agreement provides that Calgro M3 and Eris will share the cost of the infrastructure installation.

“After which Calgro M3 will be responsible for the residential components development, while Eris will be handling the commercial, retail, industrial, educational and healthcare components for their own benefits,” said Calgro M3 in its latest financial results for the year ended 29 February 2024.

After exercising the option on 1 March 2024, the Bankenveld joint venture will be required to settle the option fee of R200 million, which will be equally shared by Calgro M3 and Eris.

“The timing of this payment remains uncertain and awaits the final approval from the Competition Commission,” said Calgro M3.

“Bankenveld District City adds, at minimum, R18 billion to the revenue pipeline through the delivery of between 20,000 and 30,0000 opportunities over a 15 to 20-year period.”


Calgro M3 also declared its maiden dividend in its financial results, despite its revenue dropping from R1.5 billion in FY2023 to R1.2 billion in FY24.

“The Residential Property Development sector remains the largest contributor to group performance. The increase in gross profit margin (27.25%) counters the decrease in revenue, thereby providing an even greater contribution to Group profits,” said the group.

“With nine active projects, primarily in Gauteng and the Western Cape, all contributing to revenue and profitability, our products range from fully subsidised housing to premium homes above R3 million. This diversity is strategic, allowing us to navigate current economic and market conditions effectively.”

The group’s key financials can be found below:

Financials FY23FY24
Revenue (Rm)1 5251 284
Earnings per share (cents) 153.37192.01
Headline earnings per share (cents) 153.18189.87
Dividend (cents) 9.49

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