Calgro M3 restructures its business portfolio

Housing developer Calgro M3 said on Monday it intended to split operations into three business units, each of which will have its own senior management.

The integrated residential development business will be the first to undergo the transition, led by group executive Manda Nkuhlu.

The other two divisions are real estate investments and memorial parks.

“The group remains firmly committed to achieving the goal of equal profit contribution from our three businesses,” the company said in a statement.

Calgro said the integrated residential development business was also looking at the possible sale or exit of non-core strategic land parcels and projects.

For the six months to August, the company said headline earnings per share (HEPS) dropped 26.74% to 47.71c, even as revenue rose 40% to R1bn.

It said that the construction of rental units in partnership with SA Corporate and Afhco had affected financial performance.

The first 1,372 units of the phase 1 project in partnership with SA Corporate and Afhco are nearing completion, with handover due before end of February 2018.