Listed property developer Calgro M3 is expanding its Memorial Parks division with the acquisition of a new park in Rustenburg in the North West.
The park has burial rights and marks the sixth memorial park owned and managed by the group.
“The acquisition in Rustenburg, along with established parks in Gauteng, Western Cape and the Free State, underscores our commitment to national coverage,” commented CEO of Calgro M3, Wikus Lategan.
The company has stated that it aims to boost cash flow from its Memorial Parks segment to offset monthly overheads and interest expenses, while the latest acquisition aligns with its strategy to make dignified burial facilities accessible nationwide.
“This objective complements the cyclical nature of the residential development business and coupled with diligent capital allocation used in the current financial year to repurchase shares, offers shareholders a robust balanced investment opportunity.”
The first phase of the Rustenburg Memorial Park is due for completion in August 2024, and it will deliver an estimated 4,572 graves, adding a total of over 120,000 graves in Calgro M3’s portfolio.
The new park is expected to achieve cash flow break-even within two years.
“Calgro M3’s recently introduced lay-by payment scheme offering 0% deposit and 0% interest over 24 months, reaffirms our commitment to affordability and accessibility," Lategan said.
He said that Calgro remains committed to the housing market, as demonstrated by its new transformative Bankenveld District City project announced recently. The project is expected to revolutionise Johannesburg’s northern suburbs by adding up to 30,000 housing units in the area.
“It is estimated to double our project pipeline with anticipated revenue in excess of R18 billion, heralding socio-economic upliftment and a focus on sustainable living standards.”
Calgro has had a strong year, with shares up nearly 94% over the period.
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