Calgro M3 and Eris Property Group have announced plans for a groundbreaking project: the development of a new town situated between Sandton and Waterfall.
Valued at approximately R18 billion, the residential component alone will introduce 20,000 to 30,000 new affordable housing units to the market, with prices ranging from R500,000 to R1.5 million, reports News24.
This ambitious project will also see the development of commercial, retail, industrial, educational, and healthcare facilities.
Overseen by Calgro M3 and Eris Property Group, this multibillion-rand venture aims to address the demand for affordable housing in close proximity to South Africa's economic epicentre.
CEO Wikus Lategan of Calgro M3 anticipates a 15-year rollout period for the project, which will significantly expand the company's residential property pipeline.
The partnership between Calgro M3 and Eris Property Group will require approval from the Competition Commission.
Both entities will share the costs associated with infrastructure installation, with 34% of the land dedicated to essential amenities such as roads, stormwater management, and recreational spaces.
While the acquisition of land has been finalised, the development plans have been in progress for seven years, with town planning already in place. Groundbreaking is expected to commence late this year or early in 2025.
Spanning 280 hectares, the development prioritises affordable housing within close proximity to Sandton. Lategan anticipates that the project will elevate Calgro M3's pipeline value to nearly R34 billion, a significant increase from the previous year's valuation.
Professor Francois Viruly of the University of Cape Town highlighted the importance of catering to South Africa's growing middle class through mixed-use developments.
With a focus on affordability, the Calgro-Eris project seeks to provide housing solutions for households earning between R22,000 and R40,000 per month, addressing a crucial segment of the property market.
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