HYBRID property developer and construction company Calgro M3, now bigger than Aveng, continues to shine in an industry few investors are willing to bet their money on.
This week, the developer of integrated residential housing, which took the unconventional route of entering the funeral industry in May, announced that it had partnered with Hollard Insurance to provide funeral policies for burials at its new memorial park in Nasrec, south of Johannesburg. The share price shot above R20 for the first time after Monday’s announcement and has remained in record territory throughout the week.
Integrated residential developments attempt to create a community that merges higher-income earners, who can afford bonded houses up to the value of R3m, with lower-income earners, who receive partial or fully government subsidised houses.
At Thursday’s close Calgro M3 had pared gains, slipping 0.44% to R20.30, valuing the company at about R2.58bn — bigger than Aveng’s R2.45bn and not far from Group Five’s market capitalisation of R2.78bn.
Although it is grouped under the same umbrella as other construction companies on the JSE, MD Wikus Lategan describes Calgro M3 differently.
