New R18 billion privately-funded city being built in South Africa’s richest province
Calgro M3 has broken ground on the Phase 1 bulk and link infrastructure at the group’s new Bankenveld District City Development.
This development, located just outside of Sandton, aims to create 20,000 residential apartments and housing units located close to major transport infrastructure.
Valued at R18 billion, the development is one of the largest examples of private-sector investment in the South African economy.
Calgro revealed the strong progress it has made in constructing the bulk and link infrastructure at the site in its financial results for the year ended 28 February 2026.
CEO Ben Pierre Malherbe explained that the Bankenveld District City makes up the bulk of its R31.8 billion development pipeline.
The scale of the infrastructure at the site is substantial, with it expected to use up close to a third of the 300-hectare land designated for the city.
Malherbe also pointed out that the construction of Bankenveld, in which Calgro owns 50%, is expected to weigh on the company’s financial performance.
Calgro is looking to overhaul its operations as it reallocates capital towards Bankenveld by disposing of its non-core assets and accelerating the completion of non-core projects.
This will help it limit the growth in its debt because of the Bankenveld project and ultimately enable Calgro to reduce it snet debt over the medium-term.
“These strategic priorities informed both performance and capital allocation decisions during the year, with the Group directing its sales and construction efforts towards the non-core project pipeline,” Malherbe said.
“This targeted approach supports the phased completion and closeout of non-core projects, enabling the release of financial, operational, and management capacity for redeployment into core developments.”
Overall, Calgro’s financial performance remains relatively subdued as it looks to accelerate the completion of its development pipeline of 31,874 residential units and 114,827 burial opportunities.
Calgro makes a significant amount of its revenue from memorial parks, with this part of the business growing by 26% year-on-year.
The construction of Bankenveld has impacted the company’s margins, which fell to 27.2% while its net debt to equity ratio rose to 0.74.
Bankenveld District City
Bankenveld District City is located just off the Marlboro offramp from the N3 highway and is adjacent to the Marlboro Gautrain station.
While the project has become increasingly prominent in recent years, the land it is on was first bought in 2024 from the University of Witwatersrand for R200 million.
After receiving approval from the Competition Commission for the purchase of the land, Calgro began developing plans alongside Eris Property Group for the site.
Wits said it would use the proceeds from the R200 million sale to fund an endowment to help finance the degrees of future students.
In its latest financial results, Calgro said the Bankenveld residential project is well underway, and it is expected to be the flagship development that will anchor its business.
This project broke ground during the year with the rollout of bulk and link infrastructure, including the construction of key arterial and connector roads within the precinct.
Malherbe explained that the project is expected to deliver a minimum of 20,000 housing opportunities across a range of types.
The development is located within walking distance of the Marlboro Gautrain Station, in close proximity to job opportunities in the adjacent Linbro Park industrial area, as well as Sandton and the Waterfall City Central Business District.
“The initial phase of infrastructure delivery, encompassing both bulk and link and internal infrastructure, is expected to yield approximately 6,000 serviced opportunities over the next five years, to be rolled out in phases,” said Malherbe.
The 300-hectare mixed-used development will include 500,000m² of warehouse and logistics space and retail developments.
Roughly a third of the land will be used for infrastructure projects, such as roads, stormwater management, and green belt areas.
Calgro M3 and Eris will share the cost of the infrastructure installation, after which Calgro M3 will be responsible for the residential components.
Eris will handle all the commercial, retail, industrial, educational and healthcare components.
When announcing the project last year, Calgro M3 said the project would take a minimum of 15 years to fully build out.
Images of Bankenveld’s construction
Renders of Bankenveld’s completion
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