Calgro signs up for R1,3bn joint venture in Belhar
Calgro M3 Holdings has secured a R1,3bn joint venture agreement to develop and manage an integrated housing project in Belhar, Cape Town, as it expands operations in the Western Cape
Property development group Calgro M3 Holdings has secured a R1,3bn joint venture agreement to develop and manage an integrated housing project in Belhar, Cape Town, as it expands operations in the Western Cape.
CEO Ben Pierre Malherbe said yesterday the venture tied in with the group’s plans for further geographic diversification following the start of the group’s maiden project in the Western Cape — the R554m Scottsdene integrated housing development — earlier this year.
"We are currently reaping the benefits of a recovery in the integrated housing sector, which is outstripping recovery in the rest of the residential market due to willing participation by banks and financial institutions," Mr Malherbe said.
The integrated housing project in Belhar consists of retail, industrial and residential units.
Calgro M3’s contribution would be a R1,3bn high-density residential component of 3600 mixed-tenure properties including social housing units, open-market rental units, student accommodation and affordable housing units.
The joint venture was endorsed by the Western Cape government on December 9.
Calgro executive director Derek Steyn said the phased development was on track to start in the first quarter next year.
"The township approval and the environmental impact assessment record of decision have been secured, paving the way for the construction of the first 620 units. We have already started the process of gaining town planning approval for the second phase and expect the project to be completed by mid-2014," Mr Steyn said.
During the year, Calgro opened a permanent office in Cape Town and appointed a divisional director, Willem Steenkamp, to facilitate the Cape Town operations, strengthening its position in the Western Cape.
The four-year Scottsdene development, which allowed the group to expand its operations for the first time into the Western Cape, is an integrated housing project comprising 2200 units, including 1100 social housing and rental units and 340 community residential units, which are subsidised rental units owned by the City of Cape Town.
The project also includes 550 fully subsidised units and 210 freehold affordable housing units ranging between R250000 and R450000 in price.
Mr Malherbe said the group’s proven record in providing high-quality, low-cost housing and its successful partnership with the government in tackling the housing backlog in SA were factors in securing the joint venture.
The Belhar central business district would be responsible for the roll-out of the retail and industrial component of the project. As project manager, Calgro M3 would oversee the entire project.
In Gauteng, the group’s traditional base, two major projects, in Fleurhof and Jabulani, are due to be finished in six and four years from now.