Calgro M3 breaks ground on $1 billion Bankenveld City near Sandton

Calgro M3, the South African property developer, has started construction on the first phase of bulk and link infrastructure at its Bankenveld District City, a large-scale mixed-use precinct just outside Sandton that is expected to reshape development along Johannesburg’s key northern corridor. 

Valued at about R18 billion ($1 billion), the project is designed to deliver roughly 20,000 residential apartments and housing units over time, alongside commercial, logistics and social infrastructure. It is one of the larger private-sector urban developments currently underway in South Africa’s financial hub. 

The company said in its latest annual results for the year ended Feb. 28, 2026, that groundwork at the site is now well advanced, with early infrastructure works already underway.

First phase focuses on core infrastructure rollout

The initial phase focuses on bulk services and connector roads that will unlock the wider precinct. These works are expected to take up close to a third of the 300-hectare site, which sits near the Marlboro off-ramp on the N3 and adjacent to the Marlboro Gautrain station. 

Chief Executive Ben Pierre Malherbe said the project is being rolled out in stages, with early infrastructure expected to support about 6,000 serviced residential opportunities over the next five years. 

He said Bankenveld is positioned as the company’s anchor development, supported by its proximity to established employment zones including Sandton, Waterfall City and the Linbro Park industrial area. 

The broader master plan includes about 500,000 square meters of warehousing and logistics space, alongside retail and public amenities. Calgro will lead the residential components, while development partner Eris Property Group will focus on commercial, industrial, education and healthcare infrastructure. The full build-out is expected to take at least 15 years.

Bankenveld anchors $1.9 billion pipeline 

The Bankenveld development represents a significant portion of Calgro’s R31.8 billion ($1.9 billion) development pipeline. The company owns 50% of the project and has identified it as a central part of its long-term strategy. 

However, management acknowledged that the scale of investment is weighing on near-term financial performance. 

For the year under review, Calgro reported pressure on margins, which declined to 27.2%, while its net debt-to-equity ratio rose to 0.74. The company said increased infrastructure spend linked to Bankenveld was a key factor behind the shift. 

Malherbe said the group is adjusting its portfolio to manage the capital demands of the project. This includes disposing of non-core assets and accelerating the completion of smaller legacy developments to free up resources. 

“These priorities guided both operational and capital allocation decisions during the year,” he said, adding that the aim is to shift financial and management capacity toward core developments such as Bankenveld. 

The company is also working to contain debt growth linked to the project, with a medium-term goal of stabilising and gradually reducing leverage as new phases come online.

Bankenveld mixed-use city strategy and land history 

Bankenveld District City sits on land acquired in 2024 from the University of the Witwatersrand for about R200 million ($12 million). The transaction received Competition Commission approval, after which planning began in partnership with Eris Property Group. 

Wits said proceeds from the sale were allocated to an endowment fund supporting student financing initiatives. 

The site’s location is central to its development strategy. It is within walking distance of the Marlboro Gautrain Station and close to major commercial nodes, including Sandton’s central business district and surrounding industrial zones. 

Calgro said the precinct is structured to integrate residential, commercial and industrial space within a single urban framework, with roughly one-third of the land reserved for infrastructure such as roads, stormwater systems and green spaces. 

Once completed, the project is expected to deliver more than 20,000 housing opportunities across multiple income segments, reinforcing demand for well-located housing near transport and employment hubs.

Malherbe outlines capital allocation shift

When the project was first outlined, the company said full development would require at least 15 years of phased construction and investment. 

Malherbe, who has held senior roles at the company since the mid-2000s and returned as chief executive in late 2024, said Bankenveld reflects a long-term shift in how Calgro deploys capital across its portfolio of residential and memorial park businesses. 

He said the company’s broader pipeline includes 31,874 residential units and more than 114,000 burial opportunities, with memorial parks continuing to provide a steady revenue base, growing 26% year-on-year. 

While near-term earnings remain under pressure due to development spend, Calgro said the focus remains on disciplined execution and staged delivery as the Bankenveld precinct gradually comes online.