Nick Wilson
26 October 2007
Johannesburg — HOUSING development company Calgro M3 said yesterday it planned to list on AltX next month to raise capital so it could secure more land, as well as strengthen its balance sheet and raise its public profile.
Housing development listings have started to gain momentum in SA, and two other companies have listed in the past few months.
Affordable, fully bonded housing developer RBA Housing listed on AltX last month, and mass housing group Sea Kay Holdings listed on the JSE's main board in August.
Peter Waweru, CEO of Calgro M3, said the company, which is based in Gauteng, had been for around for 11 years and specialised in housing development "across the spectrum".
Waweru said the company developed property in the low end of the market, as well as cluster developments. One of its focus areas included integrated housing developments, which offered a range of low-cost and affordable housing.
Low-cost housing, which is fully government subsidised and given away to beneficiaries, refers to properties priced at less than R50000, said Waweru. Affordable housing refers to bonded properties priced at R240000 and higher.
" In order to balance our income, we also ensure that we don't have concentration in any one of the sectors. It is evenly spread so that if one sector is hit, it doesn't necessarily negatively affect our business."
Calgro M3 will list on November 13 at R3 a share with an initial market capitalisation of R360m. "We are expecting profit next year to be R37,7m, based on turnover of R562m," said Waweru.
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