esidential developmentCalgro M3 commits to Western Capehousing development marketIn 2011 Calgro M3 ventured into the Integrated Housing Developmentmarket in the Western Cape through its new Scottsdene IntegratedResidential Development, its first sojourn outside its stronghold of Gauteng.Calgro M3 is a residential development companywhich was founded in 1995 and focuses on twodistinctive markets, namely:• Integrated housing developments (RDP, GAP, FLISP,Social, Community Residential Units (CRU) andaffordable housing, generally < R600 000 per unit),• Mid to High housing developments (Gated securityprojects, including retirement housing, generallybetween R800 000 and R2 000 000).The company embraces an all-encompassing businessmodel which allows it full input and control over allaspects of any project.The full scope of work in a typical development completedby Calgro M3 includes infrastructure development, such aswater reticulation, sewer reticulation and roadconstruction, hostels redevelopment, development andconstruction of newly built family units and relocation ofexisting hostels residents, and cluster developments.Projects are carried out alone or in strategic partnershipswith municipal councils and financial institutions.Operational management takes place through definedbusiness units, such as internal town planning,architectural design, project management and sales &marketing and construction of top structures.Realising that no meaningful inroads can be achieved ifinvolvement is not wholehearted and fully committed,Calgro M3 immediately established a fully operationalregional office in the Western Cape, so that theencompassing residential property development processof control and management, one of Calgro M3’s strategicoperational approaches, can be installed and maintained.Today, Calgro M3 employs both directly and indirectly,some 250 people in the Western Cape alone, and “that issomething we are really proud of,” says Derek Steyn,Executive Director, New Business at Calgro M3.“We have learnt over our company’s 17 years of existencethat no business will succeed if involvement in the localcommunity is not pure, totally committed and does not addvalue to the economic benefit of the local community,”adds Steyn.The four year R554 million Scottsdene project wasawarded by the City of Cape Town in November 2010 onopen tender and is set to be completed in early 2015.Scottsdene is a Public Private Partnership between theCity Of Cape Town and Calgro M3 Holdings Ltd., anddictates full infrastructural development of the area, aswell as construction of the top structures.16OCTOBER <strong>2012</strong>
esidential developmentResidential Units) subsidised rental units owned by theCity of Cape Town, 550 fully subsidised RDP/BNG units and210 freehold affordable housing units.In addition to the dam being erected, a clear and visibleimprovement in terms of roads can be seen, andconstruction of top structures has commenced.The first delivery of housing will consist of 130 RDP/BNGhousing units for the Provincial Government of theWestern Cape with an expected date of handoverearmarked for July 2013.The next large scale product offering consists of 340 CRUhousing units of which construction has commenced inMay <strong>2012</strong> and the expected date of handover is assignedfor <strong>October</strong> 2013. The recipient of the CRU units is the Cityof Cape Town.One of the first projects Calgro M3 undertook was to callfor the commencement of the construction of a huge newattenuation dam by Bigen Africa, which will, oncompletion, be one of the largest such dams constructedin the Western Cape, and will manage storm water flowfrom a very large catchment area.The total project will comprise 2 247 units – 1 147 GAP,social housing and rental units, 340 CRU units (CommunityConstruction of the first batch of free standing openbonded houses, which will consist of 88 units, willcommence in November <strong>2012</strong> and handover of units is setto start taking place towards the end of April 2013. Thesehouses offer high quality finishes and specifications farabove those regularly found in the market, and werebought by individual homeowners making use of financialinstruments from the four large banks. Interest in theproduct was extremely high and the units were sold out ina very short space of time.“We believe this is due to a number of factors, namely avery dedicated and well trained sales force, excellentpricing, really well positioned stands offering fantasticviews of the Helderberg range and this all translating to asolid value proposition for the average buyer who wishesto own an own property,” says Charl Cornelissen,Marketing Director for Calgro M3.OCTOBER <strong>2012</strong>17