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 Property Developments News
A roads project on the N4 that took 42 months to complete instead of 30, had cost Esor dearly, said CEO Wessel van Zyl in November as he unveiled the construction group’s financial results for the six months ended August 31 in Johannesburg. The total loss over the...
JSE-listed capital growth fund Attacq has successfully raised R640-million through an accelerated bookbuild after originally seeking to raise around R500-million to acquire the remaining 18.8 % of its key asset, the Waterfall pipeline, and take full control of the...
Becoming the twentieth company and the seventh real estate investment trust (REIT) to join the Johannesburg bourse this year, property investment and development fund the Pivotal Fund has officially listed on the main board of the JSE. The Monday listing brought the...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...