Housing developer Calgro M3 has secured its first international funding – a R387-million facility – that will be used to help fund the delivery of the group’s low-income housing units in its secured pipeline in priority urban development areas.
Calgro M3’s current pipeline stands at R27.7-billion, which incorporates both its integrated residential property developments and the Memorial Parks businesses.
The finance facility, provided by Proparco – the private sector arm of France’s development bank, Agence Française de Développement – has been secured for a period of six years with an anticipated fixed simple interest rate of 12.41%, payable in six-monthly intervals.
The first drawdown of R278-million will be in December, with a second and final drawdown of R109-million expected to occur in May 2018.