Calgro M3 breaks ground on flagship Bankenveld mega development

JSE-listed property developer Calgro M3 has officially broken ground on its flagship Bankenveld District City project, which is being done together with private developers Eris Property Group and financially backed by Nedbank. This marks the next phase of the group’s integrated housing development strategy.

The announcement came alongside the release of the group’s annual financial results on Tuesday for the year ended 28 February 2026, which highlighted a pivot away from legacy, non-core assets.

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During its 2026 financial year to the end of February, Calgro executed a hyper-targeted strategy, directing its construction and sales capabilities heavily into its non-core project pipeline.

This intentional wind-down meant that 70% of the housing units transferred during the year originated outside the group’s core integrated portfolio, drawing from legacy developments like Scottsdene, La Vie Nouvelle, South Hills Lifestyle Estate, Jabulani, and 32-on-Pine.

Calgro CEO Ben Pierre Malherbe said that this clearing of the decks was vital for the company’s long-term operational framework.

“This targeted approach supports the phased completion and closeout of non-core projects, enabling the release of financial, operational, and management capacity for redeployment into core developments,” he added.

With that legacy capacity now unlocking, the company has hit the ground running at Bankenveld District City, launching phase 1 bulk and link infrastructure, including key connector bridges and arterial roads.

The landmark ’20 000-opportunity’ integrated housing development is positioned to become the core anchor of the company’s residential segment. Located within walking distance of the Marlboro Gautrain Station, the precinct is designed to yield 6 000 serviced opportunities over the next five years.

Margin pressures 

The operational transition did, however, leave a temporary mark on the financials. Residential revenue remained flat at R806 million (2025: R800 million), while the segment’s gross profit margin dropped to 24% from 27%, reflecting the tighter pricing margins accepted to quickly clear out the remaining legacy stock.

Despite this pressure, Calgro’s overall group gross margin landed at 27.20%. While lower than the prior year’s 29.43%, it remains above the firm’s long-term strategic target band of 20% to 25%.

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The group’s net asset value per share showed strong progress, climbing 10.77% to R16.46. Conversely, headline earnings per share (Heps) fell to 156.76 cents, down from 171.36 cents in the previous period.

Prudent capital allocation also saw the board declare a final cash dividend of 8.63 cents per share, matching the prior year’s payout.

Memorial Parks 

The group said its Memorial Parks division provided crucial balance sheet stability with the unit being highly cash-generative. Memorial Parks reported a stellar year, with a 26% surge in revenue to R86 million (2025: R69 million), aided by the successful expansion and launch of the Rustenburg Memorial Park in North West province.

Benefiting from a semi-fixed cost structure, increased volumes drove the segment’s gross profit margin up to 54.90% (2025: 50.90%). Lay-by sales proved to be a highly effective vehicle for customer acquisition, climbing 59% to R45 million, while the company’s active lay-by book closed out at R59.7 million.

“The new park delivered [a] strong performance, with burial rates and sales volumes exceeding those of comparable parks at a similar stage of development,” said Malherbe.

Read: Calgro sees 8% share price slump on lower revenue, profit [May 2025]

Looking ahead, Calgro entered its 2027 financial year backed by a massive R31.8 billion combined development pipeline. This future development footprint comprises 31 874 residential opportunities valued at R29.4 billion, alongside 114 827 burial opportunities valued at R2.4 billion.

Malherbe remains highly optimistic about the strategic foundation currently in place: “Calgro M3 enters FY2027 with a clear strategy, a R31.8 billion combined development pipeline, the bulk and link infrastructure at Bankenveld District City under way, and a maintained dividend — supported by a balance sheet deliberately positioned to deliver the next phase of integrated-housing growth.”