Feb 23, 2012
Property developer migrates to JSE main boardBack
Construction|Africa|Engineering|Housing|PROJECT|Projects|Property Development|Rental|Africa|Property Development|Infrastructure
The company is now listed in the ‘Industrials - Construction & Materials’ sector. The move is the culmination of consecutive periods of healthy results, on the back of a strong pipeline of projects starting to break ground.
CEO Ben-Pierre Malherbe told Engineering News Online that the timing of the move to the main board coincided with significant growth the company experienced in the previous six months.
“We intend to broaden our investor base with the main-board listing, and do not necessarily need to raise capital,” he said.
Malherbe added that the company needed to keep its growth in check, as taking on too many simultaneous projects would put quality control at risk.
During 2011 Calgro M3 expanded significantly across the country, taking on projects in the Western Cape and the Free State.
Its first Western Cape project was the R554-million Scottsdene development, comprising 2 250 units. Calgro M3 had started with massive bulk and internal civil infrastructure for Scottsdene in January and expected to start with the first 350 top-structures by early March.
The second Western Cape project entailed the R1.3-billion Belhar integrated housing project. The high-density residential component would on completion comprise 3 600 units, including social housing, open market rental, ‘gap’ and affordable housing, as well as student accommodation.
Malherbe was optimistic about the group’s prospects in the region, with a number of projects recently approved by the council.
In the Free State, Calgro M3 was awarded Bloemfontein’s primary social housing project, Brandwag. “We are in the process of completing Phase 1, comprising 402 units, with construction of the next phase of 495 units having started during February,” Malherbe said.
In Gauteng, which was the group’s traditional base, the first phases of the Fleurhof, Jabulani Hostel redevelopment project and the Jabulani CBD projects were completed.
Calgro M3 reported revenue growth of 117%, to R209 million in the six months ended August 31, while headline earnings rose 372%, to R21.7-million, despite tough trading conditions in the property and construction sectors.
A mix of public and private sector work saw margins improve substantially during the interim period. In a November trading statement the group announced that it was anticipating a 175% increase in earnings to 37.07c a share.
The full-year results to February 29 are expected to be released in May.
Malherbe said Calgro M3 would continue to realise and grow its pipeline by capitalising on government’s housing commitments and the severe housing backlog in South Africa.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Construction News
Updated 3 hours ago Transnet announced on Monday the implementation of a series of governance, control and monitoring measures to ensure the Original Equipment Manufacturers (OEMs) meet the company’s stringent localisation obligations and supplier development commitments. Transnet...
Updated 3 hours ago South African Civil Aviation Authority (SACAA) on Sunday said it had lifted the suspension of SA Express’ Air Operator Certificate (AOC). “This means that the airline may, with immediate effect, resume operating their fleet of 26 aircraft,” said SACAA in a statement.
Updated 5 hours ago US Democratic presidential front-runner Hillary Clinton begins a two-day tour on Monday through rural, traditionally coal-reliant parts of the eastern Appalachian region where Republican rival Donald Trump's pro-coal, anti-trade message has resonated with...
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...