Feb 23, 2012
Property developer migrates to JSE main boardBack
Bloemfontein|Construction|Engineering|Africa|Calgro M3|Housing|PROJECT|Projects|Property Development|Rental|Africa|South Africa|Internal Civil Infrastructure|Property Development|Western Cape|Ben-Pierre Malherbe|Infrastructure
© Reuse this
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© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 1 hour 35 minutes ago Turkish conglomerate Sabanci Holding plans to bid for some of the assets cement makers Lafarge and Holcim must sell to steer their mega-merger past competition watchdogs, a source with knowledge of the deal told Reuters. Istanbul-based Sabanci, a conglomerate with...
Updated 2 hours 26 minutes ago The Development Bank of Southern Africa (DBSA) and the University of Venda, have signed a R300-million loan agreement for the construction of on-campus student accommodation at the university’s Thohoyandou campus, in Limpopo. With an estimated cost of R448-million,...
Updated 6 hours ago The board of construction and engineering group Group Five announced on Tuesday that it had appointed Eric Vemer as the company’s new CEO. Vemer will start work on December 1, taking over from Mike Upton, who had approached the JSE-listed group’s retirement age.
Updated 24 minutes ago The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
Updated 25 minutes ago The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Updated 42 minutes ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory. The 74 000 m2 office park uses large-scale solar power systems to...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...