New R18 billion city for South Africa breaks ground

Construction on the new Bankenveld District City has started, with the first infrastructure breaking ground.

The new ‘city’ will be in Johannesburg and forms part of a joint partnership between Calgro M3 and Momentum-owned Eris Property Fund. The parties acquired the land in September last year.

The District City will integrate affordable housing, retail, lifestyle, and amenities with open green spaces. It was valued at R18 billion in 2024.

While Calgro M3 provides roughly 20,000 housing units in the development, Eris will be responsible for industrial and commercial development in the area.

The city is also set to feature an estimated 600,000 sqm of retail, office, commercial, educational, and medical space, as well as a 30,000 sqm shopping centre.

The city will be between Sandton and Waterfall in Johannesburg North, and will be accessible via the M1 and N3 highways. It will also be adjacent to the Marlboro Road Gautrain station.

In its annual report on its latest financial results, Calgro M3 said the development presents a massive opportunity for the group in a large-scale undeveloped property in the Sandton area.

It noted that the first phase of infrastructure started in Q2 2025, laying the initial groundwork for further development.

The group noted that the new mega-housing development is set to meet the needs of Johannesburg for densification and curb urban sprawl.

The development will optimise Johannesburg’s existing infrastructure, with Calgro adding that it will cater to the security and quality needs of new homeowners.

The group added that the project aims to promote socio-economic upliftment on an unprecedented scale.

“Strategically situated to bridge the gap between affordability and access to Sandton’s economic hub, Bankenveld District City will be a testament to innovative planning and sustainable development,” it said.

It added that its growing experience over the last decade in meeting market demand for quality recreational spaces, parking, and access to transportation routes will be applied to the project.

It will leverage its previous learnings to ensure that the integrated development will cater to the needs of the South African market for the next 20 years.

The development also forms part of Calgro’s current pipeline of large-scale developments, alongside Fleurhof, South Hills and Belhar, which are expected to deliver over 35,000 housing opportunities.

Despite the group’s excitement over the development, patience will be necessary to see the first housing units.

A timeline shows that residential units will be constructed only three years into development, with basic infrastructure installed first. 

Other projects for the dead and buried

Calgro M3’s primary business is its housing developments, but the group also specialises in memorial parks, which were strong performers in a challenging year.

For the last financial year, the group’s revenue and profit declined by 32.7% to R869 million, while its profit dropped 15.2% to R166 million.

The company’s earnings also dropped in the period, with earnings per share decreasing from 191 cents to 171 cents. Its headline earnings per share also fell from 189 cents to 171 cents.

That said, Calgro M3 saw solid growth in its memorial park business over the period. Revenue for the segment jumped 41.2%, and profits accounted for 17% of the group total.

The memorial parks business is a relatively new segment for Calgro, having started as a trial project in 2017.

Following the opening of the first memorial park in Nasrec, the business has expanded into six sites across the country, with over 100,000 burial sites.

It has become a highly profitable venture for the group, which estimates its value at R2.7 billion. Across the six current sites, the group anticipates total project turnover to reach over R2.5 billion.