The company turning private graveyards into a R2.5 billion business in South Africa

Property group Calgro M3 has seen solid growth in it memorial park business over the past financial year, with revenue from the segment jumping 41.2%, and profits accounting for 17% of the group total.

This marks continued successes in the sector for the group, despite taking an overall hit to revenue and profit for the period ending 1 March 2025.

Calgro specialises in the development of Integrated Residential Developments and the development and management of Memorial Parks in the country.

While the residential development business is by far the largest segment in its portfolio, it’s the private graveyards that showed the biggest growth over the past year.

The memorial parks business is a newer segment for Calgro, which started with a trial project back in 2017.

According to the group, the concept of Memorial Parks originated from the need to find alternative uses for large portions of Calgro M3-owned land unsuitable for residential or other commercial purposes.

Over the better part of a decade, the business has turned into a highly successful and profitable venture, with the group estimating its value at R2.7 billion.

Starting with the Nasrec Memorial Park in 2017, the business has expanded to six sites across the country, with 117,471 burial spaces.

These parks are all privately owned and come at a premium, but come with the service one would expect for the price, including indefinite maintenance of the land.

But even with the business carrying arguably ‘lifelong’ maintenance costs of these sites, Calgro expects the total investment to pay off richly.

Across the six sites, the group anticipates total project turnover to reach over R2.5 billion.

Pricing for the parks varies, with a simple plot for a headstone ranging between R12,000 and R39,000 (depending on location), going up to R500,000 for a ‘diamond estate’ with multiple plots.

The Platinum City Memorial Park will be the latest site to open, with the group anticipating launching in the second half of 2026.

It sees the private cemetary market as being significantly untapped, with even more potential for growth.

“There remains significant untapped potential in the market, particularly in cremations and interments, where we currently hold a relatively small share,” it said.

“By expanding our product portfolio and targeting these segments, we aim to capture a larger share of this growing market.”

Additionally, it said it will continue to invest in new sections within existing parks to enhance offerings and optimise pricing strategies to align with market trends.

Wider finances show troubles

Calgro said the primary objective is to grow annuity income from the Memorial Parks business to cover group overheads and interest obligations in the medium term.

“The 2025 financial year saw the Memorial Parks business generate sufficient annuity income to cover 100% of Group overheads,” it said.

For the year, group revenue and profit declined by 32.7% and 15.2% to R 869 million and R166 million, respectively.

The reduction came as a result of what the group called a “deliberate strategic decision to slow production” in the first half of the year, in response to political uncertainty surrounding the national elections as well as to unlock existing stock value.

The company’s earnings also suffered in the period, with earnings per share decreasing to 171.72 cents from 191.10 cents the previous year.

Calgro’s headline earnings per share decreased to 171.36 cents from 188.95 cents in 2024.

However, despite experiencing challenging economic conditions, Calgro improved its gross profit margin, reaching 29.43%. 

Although interest rates began to decline in the latter half of 2024, the full impact on the housing sector is only expected to materialise in the third or fourth quarter of 2025.

What private cemetaries look like – and how much they cost

Nasrec Memorial Park: From R1,545 p/m for 24 months, or starting at R37,000 for a headstone

Fourways Memorial Park: From R1,625 p/m for 24 months, or starting at R39,000 for a headstone

Enokuthula Memorial Park: From R585 p/m for 24 months, or starting at R14,000 for a headstone

Durbanville Memorial Park: From R1,229 p/m for 24 months, or starting at R29,500 for a lawn grave

Bloemfontein Memorial Park: From R500 p/m for 24 months, or starting at R12,000 for a headstone